Compute uncollectible accounts expense-allowance

Reference no: EM1354070

The general ledger account for Accounts Receivable shows a debit balance of $40,000. The Allowance for Uncollectible Accounts has a credit balance of $2,000. Net sales for the year were $250,000. In the past, 3 percent of net sales have proved uncollectible. An aging of accounts receivable results in an estimate of $9,000 of uncollectible accounts receivable.

Calculate:

1) Uncollectible Accounts Expense

2) the ending balance of the Allowance for Uncollectible Accounts using (a) the Percentage of Net Sales method and (b) the Accounts Receivable Aging method.

Reference no: EM1354070

Questions Cloud

Organizational structure of a healthcare organization : Organizational Structure of a Healthcare Organization - Provide the organizational structure of a health care organization

Compute how understanding management theory : Compute how understanding management theory from the past is relevant in becoming an effective 21st century manager facing global demands.

Solution to the conflict : How did individuals in the group use their personal strengths to come up with a solution to the conflict?

Explain how the averege costs of a firm may vary : Elucidate, using diagrams where appropriate, explain how the averege costs of a firm may vary short period and long period.

Compute uncollectible accounts expense-allowance : The general ledger account for Accounts Receivable shows a debit balance of $40,000. The Allowance for Uncollectible Accounts has a credit balance of $2,000. Net sales for the year were $250,000.

Calculate the balance of retained earnings : The following products are taken from the financial statements of Tracy Corporation for 2010:

Challenges os faces-passing parameter among user-kernel mode : Write two challenges an OS faces when passing parameters between user and kernel mode. Describe how an OS can overcome them

Find the magnification of the resulting image : A chair of weight 70 lies atop a horizontal floor; the floor is not frictionless. You push on the chair with a force of = 37.0 directed at the angle of 42 below the horizontal and the chair slides along the floor.

System and structure analysis : Show and discuss the mission statement of the organization in a narrative. You should quote the mission statement and cite the source in APA format.

User Account

All Pages