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

question 56

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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