At the beginning of 2014,Mark's sales had the following ledger balances: During the year there were $450,000 of credit sales,$460,000 of collections,and $3,700 of write-offs.At the end of the year,Mark's adjusted for uncollectible account expense using the percent-of-sales method,and applied a rate,based on past history,of 1.2%
-At the end of the year,what was the balance in the Allowance account?
A) $2,300
B) $1,700
C) $6,400
D) $2,700

Question

At the beginning of 2014,Mark's sales had the following ledger balances:  During the year there were $450,000 of credit sales,$460,000 of collections,and $3,700 of write-offs.At the end of the year,Mark's adjusted for uncollectible account expense using the percent-of-sales method,and applied a rate,based on past history,of 1.2%
-At the end of the year,what was the balance in the Allowance account?
A) $2,300 
B) $1,700 
C) $6,400 
D) $2,700

Quizplus · Accepted Answer

D) Calculations: $1,000 - $3,700 + ($450,000 × 0.012) = $2,700

At the Beginning of 2014,Mark's Sales Had the Following Ledger