Question
Darkness Inc. started Year6 with $100,000 in Accounts receivable and a $12,000 normal credit balance in the allowance for uncollectible accounts. They provided $350,000 of
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Darkness Inc. started Year6 with $100,000 in Accounts receivable and a $12,000 normal credit balance in the allowance for uncollectible accounts. They provided $350,000 of services on account. Darkness collected $300,000 on account from their credit customers. During Year6, Darkness wrote-off uncollectible accounts of $10,000. At the end of Year6, Darkness estimates that 10% of accounts receivable will be uncollectible. What will be the adjusted balance in the allowance for uncollectible accounts at 12/31/Year6?
A. 14000
B. 13000
C. 15000
D. 12000
E. 10000
Darkness Inc. started Year6 with $100,000 in Accounts receivable and a $12,000 normal credit balance in the allowance for uncollectible accounts. They provided $350,000 of services on account. Darkness collected $300,000 on account from their credit customers. During Year6, Darkness wrote-off uncollectible accounts of $10,000. At the end of Year6, Darkness estimates that 10% of accounts receivable will be uncollectible. What will be the adjusted balance in the allowance for uncollectible accounts at 12/31/Year6?
| A. | 14000 |
| B. | 13000 |
| C. | 15000 |
| D. | 12000 |
| E. | 10000 |
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Financial And Managerial Accounting
Authors: Charles T Horngren, Jr Walter T Harrison
2nd Edition
0135080193, 9780135080191
