Show all work for Full Credit ! The following information is from the 2013 recor
ID: 2346835 • Letter: S
Question
Show all work for Full Credit !
The following information is from the 2013 records of Armadillo Camera Shop Uncollectible accounts expense is estimated by the percent-of-sales method. Management estimates that 3% of net credit sales will be uncollectible. Which of the following will be the amount of Uncollectible accounts expense? $3,450 $2,850 $2,250 $7,000 A newly created design business called Smart Art is just finishing up its first year of operations. During the year, there were credit sales of $40,000 and collections of $36,000. One account for $660 was written off. Smart Art uses the percent-of-sales method to account for uncollectible account expense, and has decided to use a factor of 2% for their year-end adjustment of uncollectible account expense. At the end of the year, what is the balance in Uncollectible account expense? $150 $1,450 $800 $250Explanation / Answer
1) 95000*3/100= 2850+ 600 (opening Balance) =3,450 A option 2) 40000*2/100= 800+650 ( already written off) 1450 Option B