Bruner Company Uses the Percent of Receivables Method to Estimate

question 82

Essay

Bruner Company uses the percent of receivables method to estimate the amount of its uncollectible accounts expense. At the end of 2014, Bruner had a balance of $750 in its Allowance for Doubtful Accounts. The amount of Accounts Receivable at the end of the period was $80,000, and the company estimates that 4% will be uncollectible. What would be the amount of Uncollectible Accounts Expense for 2014?

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Definitions:

Average Tariff

The average rate of duty or tax levied on imported goods.

Imports

Goods or services bought from foreign countries for domestic consumption or use.

Free Trade

International trade left to its natural course without tariffs, quotas, or other restrictions.

Absolute Advantage

The ability of an individual, company, or country to produce a good or service at a lower cost per unit than the cost at which any other entity can produce the same good or service.