Bruner Company Uses the Percent of Receivables Method to Estimate

question 100

Essay

Bruner Company uses the percent of receivables method to estimate the amount of its uncollectible accounts expense.At the end of 2012,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 2012?

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Definitions:

Apparent Authority

The appearance or assumption of authority based on the actions or statements of the principal, leading others to believe that a representative has authority to act.

Ordinary Maintenance

Routine or regular upkeep necessary to maintain the condition or functionality of property or equipment.

Personal Liability

Refers to an individual's legal responsibility for debts or actions, potentially affecting their personal assets.

Respondeat Superior

A legal doctrine that holds an employer or principal legally responsible for the wrongful acts of an employee or agent, if such acts occur within the scope of the employment or agency.