Warnock Company Had $400,000 in Credit Sales for 2012,and It

True/False

Warnock Company had $400,000 in credit sales for 2012,and it estimated that 2% of the credit sales would not be collected.The balance in Accounts Receivable at the end of the year was $79,000.Warnock had never used the allowance method to account for its receivables till 2012.The net realizable value of its accounts receivable at the end of the year was $71,000.