The Allowance for uncollectible accounts currently has a debit balance of $200.The company's management estimates that 2.5% of net credit sales will be uncollectible.Net credit sales are $115,000.What will be the amount of Uncollectible accounts expense reported on the income statement?
A) $2,675
B) $2,875
C) $3,275
D) $3,075

Question

Quizplus · Accepted Answer

B) Calculations: $115,000 × .025 = $2,875

The Allowance for Uncollectible Accounts Currently Has a Debit Balance