Corporation uses the percentage-of-sales method to estimate uncollectibles. Net credit sales for the current year...
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Accounting
Corporation uses the percentage-of-sales method to estimate uncollectibles. Net credit sales for the current year amount to $5,000,000, and management estimates 3% will be uncollectible. Allowance for Doubtful Accounts prior to adjustment has a credit balance of $16,000. The amount of expense reported on the income statement will be:
$16,000
$116,000
$100,000
$150,000
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