Edsel Inc. has the following unadjusted year end trial balance information available for 20X1:

Credit sales	$	600,000
Ending accounts receivable balance	$	180,000
Ending allowance for credit losses balance	$	1,500
Estimated uncollectibles		2	%

If Edsel uses the gross accounts receivable approach for estimating the allowance for credit losses, the income statement will show an expense of

• $2,100

• $3,600

• $5,100

• $8,500

Answer rating: 100% (QA)

Answer Estimated uncollectible balance required 18000... View the full answer