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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