n Il Chapters 6 to 8 Saved Help Save& Exit Submit 0 16 Required information The

Question

n Il Chapters 6 to 8 Saved Help Save& Exit Submit 0 16 Required information The following information applies to the questions displayed below Dynamic, Inc. had credit sales of $615,000 for March. Accounts recelvable of $10.500 were determined to be worthless and were written off during March. Accounts receivable total $533,000 at March 31. Management feels that based on past experience, approximately 2% of net credit sales will prove to be uncollectitle rt 2 of 2 ints Assuming Dynamic, Inc. uses the income statement approach (an allowance method) to account for uncollectible accounts, uncollectible accounts expense for March is 1.3728 Multiple Choice $22.800 $10,660 21,160 12.300

Explanation / Answer

Uncollectible accounts under Income statement approcah = Credit sales * Estimate of uncollectible percentage of Credit sales.

= 615,000 * 2% = 12,300.

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