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Edsel Inc. has the following unadjusted year end trial balance information available for 2014: Cash Sales $ 400,000 Credit Sales 600,000 Ending Accounts receivable balance
Edsel Inc. has the following unadjusted year end trial balance information available for 2014:
Cash Sales | $ 400,000 |
Credit Sales | 600,000 |
Ending Accounts receivable balance | 180,000 |
Ending Allowance for uncollectibles | 1,500 |
Estimated uncollectibles | 2% |
If Edsel uses the sales revenue approach for estimating bad debt expense, the income statement should show an expense of
$10,000 | ||
$12,000 | ||
$20,000 | ||
$14,000 |
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