Answered step by step
Verified Expert Solution
Question
1 Approved Answer
25. The Carlyle Company began operations on January 1, 203(0. During January the com- pany had net credit sales of $800,000. The company estimates that
25. The Carlyle Company began operations on January 1, 203(0. During January the com- pany had net credit sales of $800,000. The company estimates that 4% of the net credit sales will become uncollectible and sets up an allowance account based on this assumption. Cash of $600,000 was collected from customers in payment of their accounts. Specic accounts totaling $14,000 were written off during the month. What would be the balances in the Allowance for Doubtful Accounts and the Uncollectible Accounts Expense at the end of January after the necessary adjusting entry? A. Allowance for Doubtful Accounts $32,000 and $18,000 Uncollectible Accounts Expense B. Allowance for Doubtful Accounts $32,000 and $14,000 Uncollectible Accounts Expense C. Allowance for Doubtful Accounts $18,000 and Uncollectible Accounts Expense $32,000 D. Allowance for Doubtful Accounts $14,000 and Uncollectible Accounts Expense $32,000
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started