lopezap1
Jul 17, 2012, 07:33 PM
Bigg and Talle Corporation uses the percent-of-sales method to estimate uncollectibles. Net credit
Sales for the current year amount to $5,000,000, and management estimates 2% will be uncollectible.
Allowance for Uncollectible Accounts prior to adjustment has a credit balance of $16,000. The amount of
Expense reported on the income statement will be:
A) $116,000. I think answer is this?
B) $100,000.
C) $ 84,000.
D) $ 16,000.
Sales for the current year amount to $5,000,000, and management estimates 2% will be uncollectible.
Allowance for Uncollectible Accounts prior to adjustment has a credit balance of $16,000. The amount of
Expense reported on the income statement will be:
A) $116,000. I think answer is this?
B) $100,000.
C) $ 84,000.
D) $ 16,000.