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Question - The general ledger account for Accounts Receivable shows a debit balance of $50,000. Allowance for Uncollectible Accounts has a debit balance of $1,000. Net sales for the year were $500,000. In the past, 2 percent of sales have proved uncollectible, and an aging of accounts receivable accounts results in an estimate of $13,500 of uncollectible accounts.
Using the accounts receivable aging method, find the Allowance for Uncollectible Accounts balance (after adjustment)?
a. $14,500.00
b. $14,000.00
c. $13,500.00
d. $12,500.00
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