Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A company has $317,000 in credit sales. The company uses the allowance method to account for uncollectible accounts, and the Allowance for Doubtful Accounts now

A company has $317,000 in credit sales. The company uses the allowance method to account for uncollectible accounts, and the Allowance for Doubtful Accounts now has an $8,150 debit balance. If the company estimates 6% of credit sales will be uncollectible, what is the amount of the journal entry for the estimated uncollectible accounts? I thought this was 1.6%(317000)=19020 -8150=10870 ... but I missed the question. Thank you.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Personal Finance

Authors: Jack Kapoor, Les Dlabay, Robert J. Hughes, Arshad Ahmad, Jordan Fortino

6th Canadian edition

1259453146, 978-1259453144

More Books

Students also viewed these Finance questions

Question

Describe four technical features of Darwins theory of evolution.

Answered: 1 week ago