The following information is available for Plains Company, which uses the allowance method.
Plains estimated that 1% of sales on account will be uncollectible. After several attempts at collection, Plains wrote off an account of $900 that could not be collected.Required:a) Compute the amount of uncollectible accounts expense for Plains Company.
What will be an ideal response?
a) $17,648
a) Uncollectible accounts expense = Service revenue of $1,764,800 × 1% = $17,648
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