Question

Roberts Company uses the​ percent-of-sales method to estimate uncollectibles. Net credit sales for the current year amount to $ 110 comma 000​, and management estimates 1​% will be uncollectible. The amount of expense to report on the income statement was $ 1 comma 100. The Allowance for Uncollectible Accounts prior to adjustment has a credit balance of $ 1 comma 000. The balance of Allowance for Uncollectible​ Accounts, after​ adjustment, will be

Answer 1

Answer:

The balance of Allowance for Uncollectible​ Accounts, after​ adjustment, will be $2,100.

Explanation:

Allowance for Uncollectible Accounts = Allowance for Uncollectible Accounts prior to adjustment + Current year's Allowance

Allowance for Uncollectible Accounts = $1,000 + $1,100

Allowance for Uncollectible Accounts = $2,100

So, The balance of Allowance for Uncollectible​ Accounts, after​ adjustment, will be $2,100.