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Munster Inc. has the following unadjusted year-end trial balance information available for 2020. There were no write-offs during the year: Credit sales $600,000 Ending accounts
Munster Inc. has the following unadjusted year-end trial balance information available for 2020. There were no write-offs during the year: Credit sales $600,000 Ending accounts receivable balance $180,000 Ending allowance for uncollectibles $1,500 8. If Munster Inc. uses the sales revenue approach for estimating the bad debt provision and estimates that 1% of sales will be uncollectible, the income statement should show an expense of a. $1,800 b. $6,000 c. $150 d. $4,200 9. If Munster Inc. uses the gross accounts receivable approach for estimating the bad debt provision and estimates that 4% of AR will be uncollectible, the income statement will show an expense of a. $2,100 b. $3,600 c. $5,700 d. $8,500
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