If the Income Statement Method of Estimating Uncollectible Accounts Expense

question 142

Multiple Choice

If the income statement method of estimating uncollectible accounts expense is followed, and uncollectible accounts expense is estimated to be 2% of net credit sales, the net realizable value of Four Star accounts receivable at the end of the month is:

• A) $855,800.
• B) $845,050.
• C) $19,200.
• D) $1,250,050.

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