What is the amount of uncollectible accounts expense


A company has the following account balances at the beginning of an accounting period: Accounts receivable $417,000 and Allowance for Doubtful Accounts $12,000. During the year, the company had net sales (all on credit)of $700,000, collections on accounts receivable of $540,000, and $7,000 of accounts were written off. If the company uses the income statement approach of estimating uncollectible accounts and has estimated that uncollectible accounts will be 1.5% of net sales, what is the amount of uncollectible accounts expense that will be recognized for the year?

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Accounting Basics: What is the amount of uncollectible accounts expense
Reference No:- TGS081522

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