Multiple Choice
Use this information to answer the following question. The general ledger account for Accounts Receivable shows a debit balance of $50,000. Allowance for Uncollectible Accounts has a credit balance of $1,000. Net sales for the year were $500,000. In the past, 2 percent of sales have proved uncollectible, and an aging of accounts receivable accounts results in an estimate of $13,500 of uncollectible accounts.
Using the accounts receivable aging method, the Allowance for Uncollectible Accounts balance (after adjustment) would be
A) $14,500.
B) $14,000.
C) $13,500.
D) $12,500.
Correct Answer:
Verified
Correct Answer:
Verified
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