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Diano4ka-milaya [45]
1 year ago
5

What percentage of its total accounts receivable does grainger feel are uncollectible at december 31, 2016?

Mathematics
1 answer:
erastovalidia [21]1 year ago
5 0

Using percentage of its total accounts the $50,000 is the amount to be uncollectible. The amount of $50,000 will be reported as an allowance for uncollectible accounts for the Year 2 on December 31 in the balance sheet.

According to the question,

Under the approach of the balance sheet, the ending balance of the allowance for the uncollectible accounts is the percentage (%) of the ending balance of the accounts receivable.

The amount of uncollectible accounts should reflect the aggregate needed ending balance of the allowance which amounts to $50,000.

Hence, using percentage of its total accounts the $50,000 is the amount to be uncollectible.

Learn more percentage here

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