The Allowance for Uncollectible Accounts Currently Has a Credit Balance

question 84

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 balance of the Allowance for uncollectible accounts reported on the balance sheet?

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

---

Definitions:

Change In Quantity Supplied

The difference in the amount of a product that producers are willing and able to sell due to a change in price.

Law Of Supply

The claim that, other things being equal, the quantity supplied of a good rises when the price of the good rises.

Quantity Supplied

The level of a product or service that is available from producers who are inclined and able to sell at a designated price.

Supply Curve

The supply curve is a graphical representation showing the relationship between the price of a good or service and the quantity of that good or service that a seller is willing and able to supply.