The General Ledger Account for Accounts Receivable Shows a Debit $\begin{array}{ll}\text { Uncollectible Accounts Expense } &10,750 \\\text { Allowance for Uncollectible Accounts } &&10,750\end{array}$

question 9

Multiple Choice

The general ledger account for Accounts Receivable shows a debit balance of $25,000.Allowance for Uncollectible Accounts has a credit balance of $1,500.Net sales for the year were $250,000.In the past,3 percent of sales have proved uncollectible,and an aging of accounts receivable resulted in an estimate of $10,000 of uncollectible accounts receivable. Using the accounts receivable aging method,the entry to record the Uncollectible Accounts Expense is:

• A)
• \(\begin{array}{ll}
• \text { Uncollectible Accounts Expense } &10,750 \\
• \text { Allowance for Uncollectible Accounts } &&10,750
• \end{array}\)
• B)
• \(\begin{array}{ll}
• \text { Uncollectible Accounts Expense } & 8,500 \\
• \text { Allowance for Uncollectible Accounts } &&8,500
• \end{array}\)
• C)
• \(\begin{array}{ll}
• \text { Uncollectible Accounts Expense } & 10,000 \\
• \text { Allowance for Uncollectible Accounts } &&10,000
• \end{array}\)
• D)
• \(\begin{array}{ll}
• \text { Uncollectible Accounts Expense } &11,500 \\
• \text { Allowance for Uncollectible Accounts } &&11,500
• \end{array}\)

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