The following accounts were abstracted from Almond Co.'s unadjusted trial balance at December 31, 2013: Debit Credit
Accounts receivable $3,850,000
Allowance for uncollectible accounts 51,000
Net credit sales $5,950,000
The company estimates that 5 percent of the gross accounts receivable will become uncollectible. After adjustment at December 31, 2013, the allowance for doubtful accounts should have a credit balance of

Question

Quizplus · Accepted Answer

The allowance for doubtful accounts should be 5% of the gross accounts receivable, which is $3,850,000. Therefore, 5% of $3,850,000 is $192,500.

The Following Accounts Were Abstracted from Almond Co