For the year ended December 31, 2004, Colt Co. estimated its allowance for uncollectible accounts using...

 

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For the year ended December 31, 2004, Colt Co. estimated its allowance for uncollectible accounts using the year-end aging of accounts receivable. The following data are available: $51,000 Allowance for uncollectible accounts, 1/1/04 Provision for uncollectible accounts during 2004 (2% on credit sales of $2,000,000) Uncollectible accounts written off, 11/30/04 Estimated uncollectible accounts per aging, 12/31/04 After year-end adjustment, the uncollectible accounts expense for 2004 should be 40,000 44,000 74,000 For the year ended December 31, 2004, Colt Co. estimated its allowance for uncollectible accounts using the year-end aging of accounts receivable. The following data are available: $51,000 Allowance for uncollectible accounts, 1/1/04 Provision for uncollectible accounts during 2004 (2% on credit sales of $2,000,000) Uncollectible accounts written off, 11/30/04 Estimated uncollectible accounts per aging, 12/31/04 After year-end adjustment, the uncollectible accounts expense for 2004 should be 40,000 44,000 74,000

Answer rating: 100% (QA)

To calculate the uncollectible accounts expense for 2004 we need to consider the following Allowance ... View the full answer