Jefferson Uses the Percent of Method of Estimating Uncollectible Expenses

question 108

Multiple Choice

Jefferson uses the percent of method of estimating uncollectible expenses.Based on past history,2% of credit sales are expected to be uncollectible.Sales for the current year are $5,550,000.Which of the following is correct?

• A)Uncollectible accounts are estimated to be $55,500.
• B)Uncollectible accounts are estimated to be $111,000.
• C)Bad debt expense is estimated to be $5,550.
• D)Bad debt expense is estimated to be $11,100.

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Number 4

A numerical digit representing a quantity equivalent to the sum of 2 + 2.

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