In view of past experience, it is expected there will be a loss due to uncollectible accounts of an amount equal to one-half of one percent of the sales on account during the year. If the sales on account amounted to $250,000, the estimated uncollectible account losses would be
A) $25.
B) $1,250.
C) $2,500.
D) $25,000.

Question

Quizplus · Accepted Answer

The estimated uncollectible account losses would be 0.5% of $250,000, which is $1,250.

In View of Past Experience, It Is Expected There Will