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.Net credit sales are $115,000.What will be the amount of Uncollectible account expense reported on the income statement?
A) $3,275
B) $3,075
C) $2,875
D) $2,675

Question

Quizplus · Accepted Answer

C) Calculations: $115,000 × .025 = $2,875

The Allowance for Uncollectible Accounts Currently Has a Credit Balance