Management estimates that uncollectible accounts will average about 1.5 percent of net sales or 5 percent...

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Management estimates that uncollectible accounts will average about 1.5 percent of net sales or 5 percent of accounts receivable balance. As of Dec. 31, 2002, the balances of related accounts are; Sales: $700,000 Accounts receivable: debit balance of $200,000 Allowance of uncollectible account: debit balance of $4,000. Requirements: Using the percentage of accounts receivable method, A. What is the ending balance of Allowance of Doubtful Account as of 12/31/02? (3 points) B. How much bad debt expense should be reported in the income statement of 2002? (3 points) Management estimates that uncollectible accounts will average about 1.5 percent of net sales or 5 percent of accounts receivable balance. As of Dec. 31, 2002, the balances of related accounts are; Sales: $700,000 Accounts receivable: debit balance of $200,000 Allowance of uncollectible account: debit balance of $4,000. Requirements: Using the percentage of accounts receivable method, A. What is the ending balance of Allowance of Doubtful Account as of 12/31/02? (3 points) B. How much bad debt expense should be reported in the income statement of 2002? (3 points)

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A Ending balance of Allowance for Doubtful Accounts as of 123102 There are two methods to calculate ... View the full answer