The General Ledger Account for Accounts Receivable Shows a Debit $\begin{array}{llr} \text { Uncollectible Accounts Expense} &6,000\\ \text {Allowance for Uncollectible Accounts } &&6,000\\\end{array}$

question 179

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 percentage of net sales method,the entry to record the Uncollectible Accounts Expense is:

• A)\(\begin{array}{llr}
• \text { Uncollectible Accounts Expense} &6,000\\
• \text {Allowance for Uncollectible Accounts } &&6,000\\
• \end{array}\)
• B)\(\begin{array}{llr}
• \text {Uncollectible Accounts Expense } &7,500\\
• \text { Allowance for Uncollectible Accounts} &&7,500\\
• \end{array}\)
• C)\(\begin{array}{llr}
• \text { Uncollectible Accounts Expense } &9,000\\
• \text { Allowance for Uncollectible Accounts } &&9,000\\
• \end{array}\)
• D)\(\begin{array}{llr}
• \text { Uncollectible Accounts Expense } &10,000\\
• \text { Allowance for Uncollectible Accounts } &&10,000\\
• \end{array}\)

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