The following information is from the 2019 records of Uptown Antique Shop:

Bad debts expense is estimated by the percent-of-sales method.Management estimates that 3% of net credit sales will be uncollectible.The ending balance of the Allowance for Bad Debts account after adjustment will be ________.

Question

The following information is from the 2019 records of Uptown Antique Shop:

Bad debts expense is estimated by the percent-of-sales method.Management estimates that 3% of net credit sales will be uncollectible.The ending balance of the Allowance for Bad Debts account after adjustment will be ________.

Quizplus · Accepted Answer

D)Estimated Bad Debt Expense - Allowance account balance (Debit)= $5,400 - $1,500 = $3,900

The Following Information Is from the 2019 Records of Uptown