Frick company estimates uncollectible accounts using the


Frick Company estimates uncollectible accounts using the percentage-of-receivables method and expects that 5 percent of outstanding receivables will be uncollectible for 2010. The balance in Accounts Receivable is $200,000, and the allowance account has a $3,000 credit balance before adjustment at year-end. The uncollectible accounts expense for 2010 will be:

a    $7,000

b.   $10,000

c.   $13,000

d.   $9,850

 

e.   None of the above

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Financial Accounting: Frick company estimates uncollectible accounts using the
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