Essay
A company has net sales of $100,000 during the year.At year end (before an adjustment is made),Allowance for Uncollectible Accounts has a credit balance of $5,000.If the company estimates that 3 percent of net sales are uncollectible and the company uses percentage of net sales method,what is the balance in the allowance account after the year-end adjustment has been made?
a.$3,000 debit balance
b.$3,000 credit balance
c.$8,000 credit balance
d.$2,000 debit balance
Correct Answer:
Verified
Correct Answer:
Verified
Q8: On a bank reconciliation,outstanding checks are deducted
Q9: Carlson Corporation engaged in the following transactions
Q10: The general ledger account for Accounts Receivable
Q11: At year end,Blue Earth Company has a
Q12: A contingent liability is generally not disclosed
Q15: When a bank reconciliation balances,no errors could
Q16: The account Allowance for Uncollectible Accounts is
Q17: Receivable turnover cannot be calculated without first
Q18: Assume that part of accounts and other
Q19: Match each definition with the correct term