Question
On January 1, 2013 Garcia Company had an $18,000 balance in the Accounts Receivable account and a zero balance in the Allowance for Doubtful Accounts
On January 1, 2013 Garcia Company had an $18,000 balance in the Accounts Receivable account and a zero balance in the Allowance for Doubtful Accounts account. During 2013, Garcia provided $72,000 of service on account. The company collected $68,500 cash from account receivable. Uncollectible accounts are estimated to be 2% of sales on account.
-Based on this information, the amount of cash flow from operating activities that would appear on the 2013 statement of cash flows is:
-The amount of uncollectible accounts expense recognized on the 2013 income statement is:
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