Jumpin Corporation Uses the Percent-Of-Sales Method to Estimate Uncollectibles

question 64

Multiple Choice

Jumpin Corporation uses the percent-of-sales method to estimate uncollectibles.Net credit sales for the current year amount to $2,030,000,and management estimates 5% will be uncollectible.The Allowance for Uncollectible Accounts prior to adjustment has a debit balance of $1,300.The amount of Uncollectible-Account Expense reported on the income statement will be:

• A)$1,300.
• B)$100,200.
• C)$101,500.
• D)$102,800.

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