Question

At the end of the current year​ (before adjusting​ entries), Summer Corporation had a balance of $ 88 comma 000 in Accounts Receivable and a credit balance of $ 11 comma 000 in Allowance for Uncollectible Accounts. Service revenue​ (all on​ credit) for the year totaled $ 470 comma 000. Read the requirementsLOADING.... Requirement 1. Using the​ percent-of-sales method, calculate the amount of​ Uncollectible-Account Expense if Summer Corporation estimates its​ uncollectible-account expense using a rate of 3​% of credit sales. What is the ending balance of the Allowance for Uncollectible Accounts under this​ scenario? Summer Corporation has $ of uncollectible-account expense using the percent-of-sales method. The ending balance of the Allowance for Uncollectible Accounts is $ under this scenario. Requirement 2. Now assume that Summer Corporation uses the​ aging-of-receivables method. Summer Corporation estimates that its Allowance for Uncollectible Accounts should have a credit balance of $ 26 comma 000. Calculate the amount of its​ Uncollectible-Account Expense. What is the ending balance of the Allowance for Uncollectible Accounts under this​ scenario? Summer Corporation has $ of uncollectible-account expense using the aging-of-receivables method. The ending balance of the Allowance for Uncollectible Accounts is $ under this scenario.

Answer 1

Answer:

1. Using the​ percent-of-sales method, calculate the amount of​ Uncollectible-Account Expense if Summer Corporation estimates its​ uncollectible-account expense using a rate of 3​% of credit sales. What is the ending balance of the Allowance for Uncollectible Accounts under this​ scenario?

14100

Summer Corporation has $ of uncollectible-account expense using the percent-of-sales method.  

3100

Calculate the amount of its​ Uncollectible-Account Expense. What is the ending balance of the Allowance for Uncollectible Accounts under this​ scenario?

15000

The ending balance of the Allowance for Uncollectible Accounts is $ under this scenario.

Dont have enough information.

Explanation:

Account receivable 88000

Allowance for uncollectible -11000

 

Service revenue 470000

 

Estimate uncollectible 3%

Ending balance of the allowance 14100  

Expense 3100

 

Allowance for Uncollectible 26000

Uncollectible expense account 15000