Purchase Solution

Managerial Accounting - Uncollectible Accounts

Not what you're looking for?

Ask Custom Question

The allowance for uncollectible accounts currently has a debit balance of $200. The company's management estimates that 2.5% of net credit sales will be uncollectible. Net credit sales are $115,000. What will be the amount of allowance for uncollectible accounts reported on the balance sheet?

A) $2,675
B) $3,075
C) $3,275
D) $2,875
E) $2,876

Purchase this Solution
Solution Summary

The solution computes allowance for uncollectible accounts to be reported on the balance sheet.

Purchase this Solution
Free BrainMass Quizzes
Understanding the Accounting Equation

These 10 questions help a new student of accounting to understand the basic premise of accounting and how it is applied to the business world.

Business Processes

This quiz is intended to help business students better understand business processes, including those related to manufacturing and marketing. The questions focus on terms used to describe business processes and marketing activities.

SWOT

This quiz will test your understanding of the SWOT analysis, including terms, concepts, uses, advantages, and process.

Writing Business Plans

This quiz will test your understanding of how to write good business plans, the usual components of a good plan, purposes, terms, and writing style tips.

Team Development Strategies

This quiz will assess your knowledge of team-building processes, learning styles, and leadership methods. Team development is essential to creating and maintaining high performing teams.

View More Free Quizzes
Related BrainMass Solutions

  • Managerial Accounting - Uncollectible-Account Expense

    284885 Managerial Accounting - Uncollectible-Account Expense The allowance for uncollectible accounts currently has a credit balance of $200. The company's management estimates that 2.5% of net credit sales will be uncollectible.

  • Prepare responses to the following assignment from the e-tex

    1) Uncollectible A/R are estimated and matched against sales in the same period. 2) Estimated uncollectible accounts are debited to bad debt expense and credited to allowance for doubtful accounts by an adjustment at the end of each accounting period

  • Managerial Accounting - direct write-off method

    284889 Managerial Accounting - direct write-off method A company has significant uncollectible receivables. Why is the direct write-off method acceptable?

  • LMN Co.

    214614 Uses the direct write-off method of accounting for uncollectible 9. The LMN Co. uses the direct write-off method of accounting for uncollectible accounts receivable.

  • Accounting for Uncollectible Amounts

    476720 Accounting for Uncollectible Amounts Accounting for uncollectible accounts using the allowance and direct write-off methods, and reporting receivables on the balance sheet On August 31, 2012, Daisy Floral Supply had a $155,000 debit balance

  • Worcester Company Adjusting Entries

    e) Repeat the previous question assuming that Worcester uses the direct write-off method instead of the allowance method in accounting for uncollectible accounts receivable.

  • Sears Accounting for uncollectible Accounts

    Consider the article "Sears: Accounting for Uncollectible Accounts" (Hoyt & Nelson, 2000).

  • Accounting for uncollectible accounts - allowance method

    476722 Accounting for uncollectible accounts using the allowance method Accounting for uncollectible accounts using the allowance method, and reporting receivables on the balance sheet At September 30, 2012, the accounts of Mountain Terrace Medical

  • Uncollectible accounts using percent of revenue method

    377586 Puretz Consulting: Uncollectible accounts using percent of revenue allowance method Survey of Accounting Problem 5-17 Accounting for uncollectible accounts, two cycles, using the percent of revenue allowance method The following transactions

View More Related Solutions