Discuss the percentage-of-credit-sales method

Reference no: EM131520231

Question: 1. On October 1, 2012, Oberley Corporation loans one of its employees $30,000 and accepts a 12-month, 8% note receivable. Calculate the amount of interest revenue Oberley will recognize in 2012 and 2013.

2. At the end of the year, Brinkley Incorporated's balance of Allowance for Uncollectible Accounts is $3,000 ( credit) before adjustment. The company estimates future uncollectible accounts to be 4% of credit sales for the year. Credit sales for the year total $125,000. What is the adjustment Brinkley would record for Allowance for Uncollectible Accounts using the percentage-of-credit-sales method?

Reference no: EM131520231

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