Gross Accounts Receivable is $10,000. Allowance for Doubtful Accounts has a credit balance of $200. Net sales for the year are $

Question

4 years ago

15

Gross Accounts Receivable is $10,000. Allowance for Doubtful Accounts has a credit balance of $200. Net sales for the year are $

150,000. In the past, 2% of sales had proved uncollectible, and an aging of the receivables indicates $1,200 is doubtful. Under the income statement approach, the Bad-Debts Expense for the year is

Mathematics

1 answer:

bazaltina [42] · Answer 1 · 2021-12-16T15:32:32+03:00

bazaltina [42]4 years ago

4 0

The answer, I believe, is 300 dollars. 150,000 times .02 equals 300. Forgive me if I'm wrong, but I believe this is the answer.