Jumpin Corporation uses the percent-of-sales method to estimate uncollectibles.Net credit sales for the current year amount to $2,030,000,and management estimates 5% will be uncollectible.The Allowance for Uncollectible Accounts prior to adjustment has a debit balance of $1,300.The amount of Uncollectible-Account Expense reported on the income statement will be:
A)$1,300.
B)$100,200.
C)$101,500.
D)$102,800.

Question

Quizplus · Accepted Answer

$2,030,000 × 0.05 = $101,500

Jumpin Corporation Uses the Percent-Of-Sales Method to Estimate Uncollectibles