During its first year of operations, Credit Company had the following transactions. The company uses the percent-of-sales method to estimate uncollectible accounts.
Create T accounts for accounts receivable, allowance for uncollectible accounts, and uncollectible accounts expense. Post the journal entries, calculate ending account balances, and answer the following questions.
1. How much do customers owe the company?
2. What is the net realizable value of the company's accounts receivable?
3. What is the amount of expense reported on the income statement related to uncollectible accounts?

Question

During its first year of operations, Credit Company had the following transactions. The company uses the percent-of-sales method to estimate uncollectible accounts.
  Create T accounts for accounts receivable, allowance for uncollectible accounts, and uncollectible accounts expense. Post the journal entries, calculate ending account balances, and answer the following questions.
1. How much do customers owe the company?
2. What is the net realizable value of the company's accounts receivable?
3. What is the amount of expense reported on the income statement related to uncollectible accounts?

Quizplus · Accepted Answer

The Answer of During its first year of operations, Credit Company had the following transactions. The company uses the percent-of-sales method to estimate uncollectible accounts.
  Create T accounts for accounts receivable, allowance for uncollectible accounts, and uncollectible accounts expense. Post the journal entries, calculate ending account balances, and answer the following questions.
1. How much do customers owe the company?
2. What is the net realizable value of the company's accounts receivable?
3. What is the amount of expense reported on the income statement related to uncollectible accounts?

During Its First Year of Operations, Credit Company Had the Following