At year end, Erwin Graphics has a $350 debit balance in Allowance for Uncollectible Accounts. It estimates that 5 percent of the $20,000 in sales are uncollectible. Give the amount that should be used in the adjusting entry to record uncollectible accounts using the percentage of net sales method. (Show your calculations.)

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The Answer of At year end, Erwin Graphics has a $350 debit balance in Allowance for Uncollectible Accounts. It estimates that 5 percent of the $20,000 in sales are uncollectible. Give the amount that should be used in the adjusting entry to record uncollectible accounts using the percentage of net sales method. (Show your calculations.)

At Year End, Erwin Graphics Has a $350 Debit Balance