The general ledger account for Accounts Receivable shows a debit balance of $50,000. Allowance for Uncollectible Accounts has a credit balance of $3,000. Net sales for the year were $500,000. In the past, 3 percent of sales have proved uncollectible, and an aging of accounts receivable resulted in an estimate of $20,000 of uncollectible accounts receivable. Using the accounts receivable aging
method, the entry to record Uncollectible Accounts Expense would be:
A) Uncollectible Accounts Expense 21,500Allowance for Uncollectible Accounts 21,500
B) Uncollectible Accounts Expense 17,000Allowance for Uncollectible Accounts 17,000
C) Allowance for Uncollectible Accounts 20,000Uncollectible Accounts Expense 20,000
D) Allowance for Uncollectible Accounts 23,000Uncollectible Accounts Expense 23,000
B
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