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    lopezap1's Avatar
    lopezap1 Posts: 13, Reputation: 1
    New Member
    		  
    #1

    Jul 17, 2012, 07:33 PM
    Percent of sales method
    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.
    ArcSine's Avatar
    ArcSine Posts: 969, Reputation: 106
    Senior Member
    		  
    #2

    Jul 18, 2012, 03:59 AM
    No, sorry; try again and show your computations.
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