Evaluate collectability using allowance

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(Learning Objective 4: Evaluate collectability using the allowance for uncollectible accounts) during its first year of operations, Chocolate Passion, Inc., had sales of $361,000, all on account. Industry experience suggests that Chocolate Passion’s uncollectible will amount to 2% of credit sales. At December 31, 2012, accounts receivable total $35,000. The company uses the allowance method to account for uncollectible.

Reference no: EM13745814

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