Question
The following information is from the 2019 records of Uptown AntiqueShop: Accountsreceivable, December31, 2019 $45,000(debit) Allowance for BadDebts, December31, 2019 prior to adjustment 1,200(debit) Net
The following information is from the 2019 records of Uptown AntiqueShop:
Accountsreceivable, December31, 2019
$45,000(debit)
Allowance for BadDebts, December31, 2019 prior to adjustment
1,200(debit)
Net credit sales for 2019
177,000
Accounts written off as uncollectible during 2019
15,000
Cash sales during 2019
28,000
Bad debts expense is estimated by the percentofsales method. Management estimates that 4% of net credit sales will be uncollectible. The ending balance of the Allowance for Bad Debts account after adjustment will be???
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Financial Accounting for Decision Makers
Authors: Peter Atrill, Eddie McLaney
6th Edition
273763451, 273763458, 978-0273763451
