Answer:
Therefore uncollectibel account expense = 0.22 x 94,000 = $20,680
Explanation:
Uncollectible accounts are determined by the percent-of-sales method to be 22% of credit sales. How much is uncollectible-account expense for 2014?
Uncollectible Accounst will simply be 22% multiplied by the credit sales figure for the year.
Accounts Receivable.....26,000
Allowance for collectible account...1,500
Credit sales for 2014 ...$94,000
Cash Sales for 2014.....28,000
Collection from customers on account...100,000
Therefore uncollectibel account expense = 0.22 x 94,000 = $20,680
