During May the Amy Corporation recorded cash sales of $600,000 and credit sales
ID: 2431179 • Letter: D
Question
During May the Amy Corporation recorded cash sales of $600,000 and credit sales of $500,000. Based on its experience, the company expects to be unable to collect 2% of its credit sales. On May 31 the Corporation's balance sheet reported balances in many accounts, including the following:
$110,000
$129,000
($49,000)
($16,000)
Calculate the dollar amount of the Corporation's May uncollectible accounts expense.
$10,000
$12,000
$22,000
$80,000
cash$110,000
accounts receivable$129,000
allowance for uncollectible accounts($49,000)
accounts payable($16,000)
Explanation / Answer
May uncollectible Accounts expense Credit sales *2% 500,000*2% 10000 answer ) option a $10,000
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