Question
ABC had a credit balance of $325 in its allowance for uncollectible accounts. Based on past experience, 2% of ABCs credit sales have been uncollectible.
ABC had a credit balance of $325 in its allowance for uncollectible accounts. Based on past experience, 2% of ABC’s credit sales have been uncollectible. During 2018, ABCF wrote off $325 of accounts receivable. Credit sales for 2018 were 9,000. In its 12/31/2018, balance sheet, what amount should ABC report as allowance for uncollectible accounts?
$440
$245
$325
$115
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Intermediate accounting
Authors: J. David Spiceland, James Sepe, Mark Nelson
7th edition
978-0077614041, 9780077446475, 77614046, 007744647X, 77647092, 978-0077647094
