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Bruner Company Uses the Percent of Receivables Method to Estimate

Question 121

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Bruner Company uses the percent of receivables method to estimate the amount of its uncollectible accounts expense.At the end of 2012,Bruner had a balance of $750 in its Allowance for Doubtful Accounts.The amount of Accounts Receivable at the end of the period was $80,000,and the company estimates that 4% will be uncollectible.What would be the amount of Uncollectible Accounts Expense for 2012?

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$2,450 $80,000 x 0.04 = $3,200 = desired...

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