The Miller Company earned $129,000 of revenue on account during Year 1. There was no beginning balance in the accounts receivable and allowance accounts. During Year 1, Miller collected $85,000 of cash from its receivables accounts. The company estimates that it will be unable to collect 3% of its sales on account.What is the amount of uncollectible accounts expense that will be recognized on the Year 1 income statement?
A. $3870
B. $44,000
C. $2550
D. $1320
Answer: A
You might also like to view...
Discuss sales promotion
What will be an ideal response?
Alexander supervises three workers who repair watches in the jewelry department. He bases his performance appraisal of the workers on the number of watches each employee repairs each week. It appears that Alexander is basing his appraisal on ______.
A. traits B. behaviors C. results D. incidents
A ____________ is a product that is ready for purchase or delivery to the customer.
What will be an ideal response?
Packard Company engaged in the following transactions during Year 1, its first year of operations: (Assume all transactions are cash transactions.) 1) Acquired $1200 cash from the issue of common stock. 2) Borrowed $670 from a bank. 3) Earned $850 of revenues. 4) Paid expenses of $300. 5) Paid a $100 dividend. During Year 2, Packard engaged in the following transactions: (Assume all transactions are cash transactions.) 1) Issued an additional $575 of common stock. 2) Repaid $395 of its debt to the bank. 3) Earned revenues of $1000. 4) Incurred expenses of $460. 5) Paid dividends of $150. What is the after-closing amount of retained earnings that will be reported on Packard's balance sheet at the end of Year 2? (Assume that closing entries have been)
A. $1315. B. $840. C. $990. D. $1240.