The following information pertains to Lightning Inc. ,at the end of the year: 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?
$$\begin{array} { | l | r | l | }
\hline \text { Credit Sales } & \$ 60,000 & \
\hline \text { Accounts Payable } & 10,000 & \
\hline \text { Accounts Receivable } & 7,000 & \
\hline \begin{array} { l }
\text { Allowance for Uncollectible } \
\text { Accounts }
\end{array} & 400 & \text { credit } \
\hline \text { Cash Sales } & 20,000 & \
\hline
\end{array}$$

Question

The following information pertains to Lightning Inc. ,at the end of the year: 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?
$$\begin{array} { | l | r | l | } 
\hline \text { Credit Sales } & \$ 60,000 & \
\hline \text { Accounts Payable } & 10,000 & \
\hline \text { Accounts Receivable } & 7,000 & \
\hline \begin{array} { l } 
\text { Allowance for Uncollectible } \
\text { Accounts }
\end{array} & 400 & \text { credit } \
\hline \text { Cash Sales } & 20,000 & \
\hline
\end{array}$$

Quizplus · Accepted Answer

The Answer of The following information pertains to Lightning Inc. ,at the end of the year: 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?
$$\begin{array} { | l | r | l | } 
\hline \text { Credit Sales } & \$ 60,000 & \
\hline \text { Accounts Payable } & 10,000 & \
\hline \text { Accounts Receivable } & 7,000 & \
\hline \begin{array} { l } 
\text { Allowance for Uncollectible } \
\text { Accounts }
\end{array} & 400 & \text { credit } \
\hline \text { Cash Sales } & 20,000 & \
\hline
\end{array}$$

The Following Information Pertains to Lightning Inc A)$600 B)$1,000

The Following Information Pertains to Lightning Inc A)$600
B)$1,000