Use this information to answer the following question. The general ledger accoun

Question

Use this information to answer the following question.

The general ledger account for Accounts Receivable shows a debit balance of $50,000. Allowance for Uncollectible Accounts has a credit balance of $1,000. Net sales for the year were $500,000. In the past, 2 percent of sales have proved uncollectible, and an aging of accounts receivable accounts results in an estimate of $11,700 of uncollectible accounts.

Using the accounts receivable aging method, the Allowance for Uncollectible Accounts balance would be credited for

a. $11,700. b. $12,700. c. $10,700. d. $12,200.

Explanation / Answer

credit amount = 11700 - 1000 = 10700

correct option is "C" - 10700

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