Ques 7

Arundel Company uses percentage of sales to

estimate uncollectibles.At the end of the fiscal year, December

31, 2018, Accounts Receivable has a balance of $78,000 and

had a total of $770,000 in credit sales.Arundel assumes that

2.0% of sales will eventually be uncollectible.before

adjustment, the Allowance for Uncollectible Accounts had a

credit balance of 5,500.What dollar amount should be credited

to Allowance for Uncollectible Accounts at year end?