Question
Dynamic, Inc. had credit sales of $670,000 for March. Accounts receivable of $8,500 were determined to be worthless and were written off during March. Accounts
Dynamic, Inc. had credit sales of $670,000 for March. Accounts receivable of $8,500 were determined to be worthless and were written off during March. Accounts receivable total $521,000 at March 31. Management feels that based on past experience, approximately 2% of net credit sales will prove to be uncollectible.
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Assuming Dynamic, Inc. uses the income statement approach (an allowance method) to account for uncollectible accounts, uncollectible accounts expense for March is: | |
Assuming Dynamic, Inc. uses the income statement approach (an allowance method) to account for uncollectible accounts, uncollectible accounts expense for March is: |
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