The General Ledger Account for Accounts Receivable Shows a Debit

question 30

Essay

The general ledger account for Accounts Receivable shows a debit balance of $40,000.The Allowance for Uncollectible Accounts has a credit balance of $2,000.Net sales for the year were $250,000.In the past,3 percent of net sales have proved uncollectible.An aging of accounts receivable accounts results in an estimate of $9,000 of uncollectible accounts receivable.Calculate (a)Uncollectible Accounts Expense and (b)the ending balance of the Allowance for Uncollectible Accounts using (i)the percentage of net sales method and (ii)the accounts receivable aging method.

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Definitions:

Readability

The ease with which text can be read and understood by an audience.

Spoken Communication

The verbal exchange of information and ideas between individuals or groups.

Bad News

Unfavorable or distressing information that needs to be communicated, often requiring careful handling to mitigate negative reactions.

Self-Handicapping

A cognitive strategy where individuals create obstacles for themselves or provide excuses for potential failure, thereby protecting self-esteem in case of poor performance.