The following information pertains to Lightning,Inc.at the end of the year:
$$\begin{array} { l r r }
\text { Credit Sales } & \$ 60,000 \
\text { Accounts Payable } & 10,000 & \
\text { Accounts Receivable } & 7,000 & \
\text { Allowance for Uncollectible Accounts } & 400 & \text { credit } \
\text { Cash Sales } & 20,000 &
\end{array}$$
Lightning uses the percentage-of-credit-sales method and estimates 1% of sales are uncollectible.What is the ending balance of the allowance account after the year-end adjustment?

Question

The following information pertains to Lightning,Inc.at the end of the year:
$$\begin{array} { l r r } 
\text { Credit Sales } & \$ 60,000 \
\text { Accounts Payable } & 10,000 & \
\text { Accounts Receivable } & 7,000 & \
\text { Allowance for Uncollectible Accounts } & 400 & \text { credit } \
\text { Cash Sales } & 20,000 &
\end{array}$$
Lightning uses the percentage-of-credit-sales method and estimates 1% of sales are uncollectible.What is the ending balance of the allowance account after the year-end adjustment?

Quizplus · Accepted Answer

The Answer of The following information pertains to Lightning,Inc.at the end of the year:
$$\begin{array} { l r r } 
\text { Credit Sales } & \$ 60,000 \
\text { Accounts Payable } & 10,000 & \
\text { Accounts Receivable } & 7,000 & \
\text { Allowance for Uncollectible Accounts } & 400 & \text { credit } \
\text { Cash Sales } & 20,000 &
\end{array}$$
Lightning uses the percentage-of-credit-sales method and estimates 1% of sales are uncollectible.What is the ending balance of the allowance account after the year-end adjustment?

The Following Information Pertains to Lightning,Inc Lightning Uses the Percentage-Of-Credit-Sales Method and Estimates 1% of Sales