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

---

Definitions:

Relevant Examples

Instances or cases that are directly connected to the topic or situation at hand and help to explain or clarify it.

Team Members

Individuals who are part of a group working together towards a common objective.

Respect And Trust

Fundamental values in relationships involving admiration and confidence in someone's character and abilities.

Conforming Stage

A phase in group development where members adjust their behaviors and attitudes to align with the group's norms and dynamics.