Question: 8 Practice Problem Set - Week 8 Context: You are working for a company that is asking you to perform some analysis on some

8 Practice Problem Set - Week 8 Context: You are working for

8 Practice Problem Set - Week 8 Context: You are working for a company that is asking you to perform some analysis on some company financials. The company is doing great and you are being asked to perform the following analysis to report back to the CFO! Respond to the following situation. A company estimates its uncollectible accounts expense to be 2% of credit sales. Company credit sales for 20X5 were $1,000,000. During 20X5, Company wrote off $18,000 of uncollectible accounts. Company allowance for uncollectible accounts had a $15,000 credit balance of January 1, 20X5. In its December 31, 20X5 balance sheet, what amount should Company report as allowance for uncollectible accounts? A. $17,000. B. $18,000. C. $20,000. D. $23,000. E. None of the above.

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