The Miller Company earned $101,000 of revenue on account during Year 1. There was no beginning...
The Miller Company earned $101,000 of revenue on account during Year 1. There was no beginning balance in the accounts receivable and allowance accounts. During Year 1, Miller collected $71,000 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?
Homework Answers
Answer
- The amount of uncollectible accounts expense that will be
recognized on the Year 1 income statement is calculated as
below:
Uncollectible account expense = Revenue earned on account during Year 1 x 3%
= $ 101,000 x 3%
= $ 3,030 - Answer = $ 3,030
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The Miller Company earned $101,000 of revenue on account during
Year 1. There was no beginning...
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