Uncollectible Accounts--Two Methods At the End of the Year the Unadjusted Trial Balance

question 4

Essay

Uncollectible accounts--two methods
At the end of the year the unadjusted trial balance of Angel Provisions included the following accounts:

(a.) If Angel uses the balance sheet approach to estimate uncollectible accounts expense, and aging the accounts receivable indicates the estimated uncollectible portion to be $6,075, what will the uncollectible accounts expense for the year be?
(b.) If the income statement approach to estimating uncollectible accounts expense is followed, and uncollectible accounts expense is estimated to be 1% of net credit sales, what is the amount of uncollectible accounts expense for the year?

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Definitions:

Mindfulness

A mental state achieved by focusing one's awareness on the present moment, while calmly acknowledging and accepting one's feelings, thoughts, and bodily sensations.

Self-Regulation of Attention

The ability to control one's focus of attention, managing distractions and focusing on relevant stimuli or tasks.

Nonjudgmental Awareness

An approach or practice of being mindful and observant without making judgments or evaluations.

Sensation-Seeking

The desire to participate in highly arousing activities; it is especially common in early and mid-adolescence.