Credit sales during the year were $425,000, the Allowance for Uncollectible Accounts had a beginning of year balance of $2,500 credit, accounts written off during the year were $2,200. It is estimated that 2% of all credit sales are eventually uncollectible. What is the Uncollectible Accounts Expense? The Uncollectible Accounts Expense should be $10,000. The Uncollectible Accounts Expense should be $9,700. The Uncollectible Accounts Expense should be $8,500. The Uncollectible Accounts Expense should be $8,800. None of these.

Credit sales during the year were $425,000, the Allowance for Uncollectible Accounts had a beginning of year balance of $2,500 credit, accounts written off during the year were $2,200. It is estimated that 2% of all credit sales are eventually uncollectible. What is the Uncollectible Accounts Expense? The Uncollectible Accounts Expense should be $10,000. The Uncollectible Accounts Expense should be $9,700. The Uncollectible Accounts Expense should be $8,500. The Uncollectible Accounts Expense should be $8,800. None of these.

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

Section: Chapter Questions

Problem 27BEB: Last year, Tobys Hats had net sales of 45,000,000 and cost of goods sold of 29,000,000. Tobys had...

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Last year, Tobys Hats had net sales of 45,000,000 and cost of goods sold of 29,000,000. Tobys had the following balances: Refer to the information for Tobys on the previous page. Required: Note: Round answers to one decimal place. 1. Calculate the average accounts receivable. 2. Calculate the accounts receivable turnover ratio. 3. Calculate the accounts receivable turnover in days.
Starlight Enterprises has net credit sales for 2019 in the amount of $2,600,325, beginning accounts receivable balance of $844,260, and an ending accounts receivable balance of $604,930. Compute the accounts receivable turnover ratio and the number of days sales in receivables ratio for 2019 (round answers to two decimal places). What do the outcomes tell a potential investor about Starlight Enterprises if the industry average is 1.5 times and the number of days sales ratio is 175 days?
Last year, Nikkola Company had net sales of 2.299.500,000 and cost of goods sold of 1,755,000,000. Nikkola had the following balances: Refer to the information for Nikkola Company above. Required: Note: Round answers to one decimal place. 1. Calculate the average accounts receivable. 2. Calculate the accounts receivable turnover ratio. 3. Calculate the accounts receivable turnover in days.
Credit sales during the year were $425,000, the Allowance for Uncollectible Accounts had a beginning of year balance of $2,500 credit, accounts written off during the year were $2,200. It is estimated that 2% of all credit sales are eventually uncollectible. What is the Uncollectible Accounts Expense?
Credit sales during the year were $425,000, the Allowance for Uncollectible Accounts had a beginning of year balance of $2,500 debit, accounts written off during the year were $2,200. It is estimated that 2% of all credit sales are eventually uncollectible. What is the ending balance in the Allowance for Uncollectible Accounts? $8,500 $8,800 $3,800 $8,200
At the end of the fiscal year, accounts receivable has a balance of $100000 and allowance for doubtful accounts has a balance of $ 7000. the expected net realizable value of the accounts receivable is?
The Allowance for uncollectible accounts currently has a credit balance of $200. Thecompany's management estimates that 2.5% of net credit sales will be uncollectible. Netcredit sales are $115,000. What will be the amount of Uncollectible account expensereported on the income statement?
At the beginning of current year, had a credit balance of P260,000 in the allowance for uncollectible accounts. Based on past experience, 2% of credit sales would be uncollectible. During the current year, the entity wrote off P325,000 of uncollectible accounts. Credit sales for the year totalled P9,000,000. What amount should be reported as allowance for uncollectible accounts at year-end?
The year-end balance in accounts receivable is $300,000, the Allowance for Uncollectible Accounts had a beginning of year balance of $2,500 credit, accounts written off during the year were $2,200. An aging of accounts receivable determined that $6,000 of receivables will be uncollectible. What is the net realizable value of accounts receivable at year end? $298,700 $294,000 $293,700 $294,300
At the beginning of the current year, Jamin Company had a credit balance of P260,000 in the allowance for uncollectible accounts. Based on the past experience, 2% of credit sales would be uncollectible. During the current year, the entity wrote off P325,000 of uncollectible accounts. Credit sales for the year totaled P9,000,000. What Is the uncollectible accounts expense for the year?
A company has net credit sales of $499000 for the year and it estimates that uncollectible accounts will be 3% of its Account Receivables balance. If Allowance for Doubtful Accounts has a credit balance of $2000 prior to adjustment, its balance after adjustment will be a credit of $16970. $14970. $12970. $14910.
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