Question
Migual Company uses the percent-of-sales method to estimate uncollectibles. Net credit sales for the current year amount to$110,000, and management estimates 44% will be uncollectible.
Migual Company uses the percent-of-sales method to estimate uncollectibles. Net credit sales for the current year amount to$110,000,
and management estimates 44% will be uncollectible. The Allowance for Uncollectible Accounts prior to adjustment has a credit balance of $2,000.
The amount of expense to report on the income statement will be
A.$6,400.
B.$6,600.
C.$1,000.
D.$4,400
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The Internal Auditing Handbook
Authors: K. H. Spencer Pickett
2nd Edition
0470848634, 978-0470848630
