Question
The following information pertains to a company at the end of the year: Credit Sales $ 72,000 Accounts Payable 13,900 Accounts Receivable 6,500 Allowance for
The following information pertains to a company at the end of the year:
| Credit Sales | $ 72,000 | |
|---|---|---|
| Accounts Payable | 13,900 | |
| Accounts Receivable | 6,500 | |
| Allowance for Uncollectible Accounts | 1,500 | credit |
| Cash Sales | 26,000 |
The company uses the percentage-of-credit-sales method and estimates 9% of sales are uncollectible. What is the ending balance of the allowance account after the year-end adjusting entry?
Multiple Choice
$7,980
$4,980
$10,320
$6,480
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Operational Auditing For Management Control
Authors: Edward F Norbeck
1st Edition
0814451853, 978-0814451854
