At the beginning of 2014, Mark's sales had the following ledger balances: During the year there were $450 000 of credit sales, $460 000 of collections, and $3 700 of write- offs. At the end of the year, Mark's adjusted for Bad debts expense using the percentage- of- sales method, and applied a rate, based on past history, of 1.2%. At the end of the year, what was the balance in the Allowance account?

Question

At the beginning of 2014, Mark's sales had the following ledger balances:  During the year there were $450 000 of credit sales, $460 000 of collections, and $3 700 of write- offs. At the end of the year, Mark's adjusted for Bad debts expense using the percentage- of- sales method, and applied a rate, based on past history, of 1.2%. At the end of the year, what was the balance in the Allowance account?

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The Answer of At the beginning of 2014, Mark's sales had the following ledger balances:  During the year there were $450 000 of credit sales, $460 000 of collections, and $3 700 of write- offs. At the end of the year, Mark's adjusted for Bad debts expense using the percentage- of- sales method, and applied a rate, based on past history, of 1.2%. At the end of the year, what was the balance in the Allowance account?

At the Beginning of 2014, Mark's Sales Had the Following