The Allowance for Uncollectible Accounts Currently Has a Debit Balance

question 118

Multiple Choice

The Allowance for uncollectible accounts currently has a debit 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) $2,675
• B) $2,875
• C) $3,275
• D) $3,075

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