Refer to questions 5-45 and 5-46. The following year, Milford Company wrote off $2,800 of old receivables
Question:
Refer to questions 5-45 and 5-46. The following year, Milford Company wrote off $2,800 of old receivables as uncollectible. What is the balance in the Allowance account now?
Data from Q5-45 to Q5-46
Milford Company uses the percent-of-sales method to estimate uncollectibles. Net credit sales for the current year amount to $140,000, and management estimates 2% will be uncollectible. The Allowance for Uncollectible Accounts prior to adjustment has a credit balance of $3,000. The amount of expense to report on the income statement will be
a. $1,500.
b. $2,800.
c. $8,400.
d. $5,800.
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Related Book For
Financial Accounting
ISBN: 978-0134725987
12th edition
Authors: C. William Thomas, Wendy M. Tietz, Walter T. Harrison Jr.
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