The balances of selected accounts of the Dexter Company on December 31, 20X1, are given below:

Accounts Receivable	$	800,000
Allowance for Doubtful Accounts (credit)		2,500
Total Sales		9,900,000
Sales Returns and Allowances (total)		235,000

(Credit sales were $8,450,000. Returns and allowances on these sales were $195,000.) Required:

Compute the amount to be charged to Uncollectible Accounts Expense under each of the following different assumptions:

Uncollectible accounts are estimated to be 0.2 percent of net credit sales.

Experience has shown that about 3.3 percent of the accounts receivable will prove worthless.

Suppose Allowance for Doubtful Accounts has a debit balance of $2,000 instead of a credit balance of $2,500, but all other account balances remain the same. Compute the amount to be charged to Uncollectible Accounts Expense under each assumption in item 1.

Analyze: If you were the owner of Dexter Company and wished to maximize profits reported for 20X1, which method would you prefer to use?

Complete this question by entering your answers in the tabs below. Uncollectible accounts are estimated to be 0.2 percent of net credit sales. Compute the amount to be charged to Uncollectible Accounts Expense. (Round your "Estimated loss rate" to 3 decimal places, i.e. 1.2% should be entered as 0.012 \). Complete this question by entering your answers in the tabs below. Experience has shown that about 3.3 percent of the accounts receivable will prove worthless. Compute the amount to be charged to Uncollectible Accounts Expense. Complete this question by entering your answers in the tabs below. Suppose Allowance for Doubtful Accounts has a debit balance of $2,000 instead of a credit balance of $2,500, but all other account balances remain the same. Uncollectible accounts are estimated to be 0.2 percent of net credit sales. Compute the amount to be charged to Uncollectible Accounts Expense. (Round your "Estimated loss rate" to 3 decimal places, i.e. 1.2% should be entered as 0.012 .) Complete this question by entering your answers in the tabs below. Suppose Allowance for Doubtful Accounts has a debit balance of $2,000 instead of a credit balance of $2,500, but all other account balances remain the same. Experience has shown that about 3.3 percent of the accounts receivable will prove worthless. Compute the amount to be charged to Uncollectible Accounts Expense. Complete this question by entering your answers in the tabs below. If you were the owner of Dexter Company and wished to maximize profits reported for 201, which method would you prefer to use? Complete this question by entering your answers in the tabs below. Uncollectible accounts are estimated to be 0.2 percent of net credit sales. Compute the amount to be charged to Uncollectible Accounts Expense. (Round your "Estimated loss rate" to 3 decimal places, i.e. 1.2% should be entered as 0.012 \). Complete this question by entering your answers in the tabs below. Experience has shown that about 3.3 percent of the accounts receivable will prove worthless. Compute the amount to be charged to Uncollectible Accounts Expense. Complete this question by entering your answers in the tabs below. Suppose Allowance for Doubtful Accounts has a debit balance of $2,000 instead of a credit balance of $2,500, but all other account balances remain the same. Uncollectible accounts are estimated to be 0.2 percent of net credit sales. Compute the amount to be charged to Uncollectible Accounts Expense. (Round your "Estimated loss rate" to 3 decimal places, i.e. 1.2% should be entered as 0.012 .) Complete this question by entering your answers in the tabs below. Suppose Allowance for Doubtful Accounts has a debit balance of $2,000 instead of a credit balance of $2,500, but all other account balances remain the same. Experience has shown that about 3.3 percent of the accounts receivable will prove worthless. Compute the amount to be charged to Uncollectible Accounts Expense. Complete this question by entering your answers in the tabs below. If you were the owner of Dexter Company and wished to maximize profits reported for 201, which method would you prefer to use