Question
CHAPTER 7: ACCOUNTS RECEIVABLE As an employee of TejLight Company, you are provided with the following information: Account Balances, December 31, 2019 DR CR
CHAPTER 7: ACCOUNTS RECEIVABLE As an employee of TejLight Company, you are provided with the following information: Account Balances, December 31, 2019 DR CR Accounts Receivable Current 325,000 1-30 days 177,000 31-60 days 72,000 61-90 days 65,000 over 90 days 20,600 659,600 Allowance for Doubtful Accounts Sales (on account/credit) Sales discounts 25,000 13,000 2,500,000 TejLight Company uses the Allowance Method to estimate uncollectible accounts. In 2019 an analysis determined that 2.5% of net credit sales sold during the year will be uncollectible. Required: Under the Allowance Method where 2.5% of net credit sales is deemed uncollectible, what is the ending balance in the Allowance for Doubtful Accounts on December 31, 2019? Choose...
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