The Allowance for Uncollectible Accounts Currently Has a Credit Balance

question 127

Multiple Choice

The Allowance for uncollectible accounts currently has a credit balance of $200.The company's management estimates that 2.5% of net credit sales will be uncollectible.Net credit sales are $115,000.What will be the amount of Uncollectible account expense reported on the income statement?

• A) $3,275
• B) $3,075
• C) $2,875
• D) $2,675

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Definitions:

Formalizing

The process of establishing official procedures or systems, often within organizational or legal contexts.

Group Development

A process by which a group of individuals with a common purpose evolves into a cohesive unit with defined roles and norms.

Group Process

The way group members deal with one another while working on a task.

Coordinating Stage

A phase in teamwork or project management where the group organizes its efforts and resources effectively to execute a plan.