The General Ledger Account for Accounts Receivable Shows a Debit

question 93

Essay

The general ledger account for Accounts Receivable shows a debit balance of $37,500. The Allowance for Uncollectible Accounts has a debit balance of $1,000. Net sales for the year were $375,000. In the past, 2 percent of net sales have proved uncollectible. An aging of accounts receivable accounts results in an estimate of $6,250 of uncollectible accounts receivable. Calculate (1) Uncollectible Accounts Expense and (2) the ending balance of the Allowance for Uncollectible Accounts using (a) the percentage of net sales method and (b) the accounts receivable aging method.

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Definitions:

Stress Inoculation Training

A cognitive-behavioral therapy technique teaching individuals to cope with stress by preparing them in advance to handle stressful situations effectively.

Coping Skills

Techniques or methods used by individuals to manage or mitigate stress and deal with difficult situations effectively.

Three Phase Approach

A model that divides a process or treatment into three distinct stages for better management and outcomes.

Dysfunctional Thoughts

Dysfunctional thoughts are irrational or negative thought patterns that can lead to emotional distress and behavioral problems.