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
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- 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
- 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:
- Under the allowance method of accounting for uncollectible accounts receivable, no attempt is made to estimate the bad debt expense. ( )
- Under the direct write-off method, allowance for Uncollectible accounts does not exist.