At the Beginning of 2014, Mark's Sales Had the Following

question 72

Multiple Choice

At the beginning of 2014, Mark's sales had the following ledger balances: During the year there were $450,000 of credit sales, $460,000 of collections, and $3,700 of write-offs. At the end of the year, Mark's adjusted for uncollectible account expense using the percent-of-sales method, and applied a rate, based on past history, of 1.2%. At the end of the year, what was the balance in the Uncollectible accounts expense?

• A)$2,300
• B)$5,400
• C)$6,400
• D)$2,700