What is the uncollectible accounts expense

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Problem 1: Credit sales during the year were $300,000, the Allowance for Uncollectible Accounts had a beginning of year balance of $2,500 credit, accounts written off during the year were $2,200. It is estimated that 2.1% of all credit sales are eventually uncollectible. What is the Uncollectible Accounts Expense?

Option 1: The Uncollectible Accounts Expense should be $6,600.
Option 2: The Uncollectible Accounts Expense should be $6,300.
Option 3: The Uncollectible Accounts Expense should be $8,500.
Option 4: None of these.
Option 5: The Uncollectible Accounts Expense should be $8,800.

Problem 2: Using the direct write-off method for accounting for uncollectible accounts is not preferred by GAAP because it violates which accounting principle?

Option 1: Cost principle
Option 2: Matching principle
Option 3: Revenue recognition principle
Option 4: Objectivity principle

Reference no: EM132933234

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