On January 1, Year 2, Kincaid Company's Accounts Receivable and the Allowance for Doubtful Accounts carried balances of $71,000 and $2900, respectively. During Year 2, Kincaid reported $190,000 of credit sales, wrote off $1750 of receivables as uncollectible, and collected cash from receivables amounting to $227,700. Kincaid estimates that it will be unable to collect one percent (1%) of credit sales.What is the amount of uncollectible accounts expense that will be reported on the Year 2 income statement?
A. $2277
B. $1900
C. $1750
D. $710
Answer: B
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Answer the following statement true (T) or false (F)
On January 1 . 2013 . a company purchased four 5%, $1,000 Esso bonds at 103 as an investment in securities available-for-sale. The bonds pay interest each December 31 and have four years remaining to maturity on the purchase date. The market value of the bonds on December 31 . 2013 . was 107, and on December 31 . 2014, was 105. The entry to adjust the carrying value of the securities
available-for-sale at December 31 . 2014, will include a a. debit to accumulated gain on securities available-for-sale in the stockholders' equity section. b. credit to the investment account of $30. c. debit to realized loss of $30. d. debit to unrealized loss of $80.
Which of the following is a trade sales promotion technique that involves compensation for retailers that include a product in their local advertising?
A) trade allowance B) co-operative advertising allowance C) loyalty program D) trade premium E) trade coupon
The amount of raw material purchased in a period may be different than the amount of material used that period because
a. the number of units sold may be different from the number of units produced. b. finished goods inventory may fluctuate during the period. c. the raw material inventory may increase/decrease during the period. d. companies often pay for material in the period after it is purchased.