Graham Company uses the percent-of-sales method to estimate uncollectible. Net credit sales for the current year amount to $130,000 and management estimates 3% will be uncollectible. Allowance for doubtful accounts prior to adjustment has a credit balance of $2,000. The amount of expense to report on the income statement will be
举一反三
- Graham Company uses the percent-of-sales method to estimate uncollectible. Net credit sales for the current year amount to $130,000 and management estimates 3% will be uncollectible. Allowance for doubtful accounts prior to adjustment has a credit balance
- A company has sales of $350,000, and estimates that 0.7% of its sales are uncollectible. The estimated amount of bad debt expense is $2,450. ( )
- A company reports accounts receivable on the balance sheet at a net realizable value of $586,592. If their gross receivables were $612,854, then the balance in the allowance for uncollectible accounts is:
- Fresno Salads has current sales of $6,000 and a profit margin (net income/sales) of 6.5 percent. The firm estimates that sales will increase by 4 percent next year and that all costs will vary in direct relationship to sales. What is the pro forma net income?
- Under the allowance method of accounting for uncollectible accounts receivable, no attempt is made to estimate the bad debt expense. ( )