The following information pertains to Lightning Inc., as of the end of the year:

Credit sales	$75,000
Accounts payable	13,900
accounts receivable	8,200
Provision for Uncollectible Accounts	$900 credit
cash sales	24,000

Lightning uses the percentage of credit sales method and estimates that 4% of sales are uncollectible. What is the ending balance of the allowance account after the year-end adjustment?

Answer rating: 100% (QA)

To calculate this we need to first determine the current balance in the allowance for uncollectible ... View the full answer