Multiple Choice
Marston Company has outstanding accounts receivable totaling €4.5 million as of December 31 and sales on credit during the year of €20 million. There is also a credit balance of €18,000 in the allowance for doubtful accounts. After aging its receivables, the company estimates that 2% of its receivables will be uncollectible. What will be the balance for the Allowance for Uncollectible Accounts after the year-end adjustment is made to record bad debt expense?
A) €418,000
B) €400,000
C) €90,000
D) €382,000
Correct Answer:
Verified
Correct Answer:
Verified
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