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Arundel Company uses percentage of sales to estimate uncollectibles.  At the end of the fiscal year, December...

Arundel Company uses percentage of sales to estimate uncollectibles.  At the end of the fiscal year, December 31, 2018, Accounts Receivable has a balance of $78,000 and had a total of $725,000 in credit sales. Arundel assumes that 1.5% of sales will eventually be uncollectible. before adjustment, the Allowance for Uncollectible Accounts had a credit balance of 4,000. What dollar amount should be credited to Allowance for Uncollectible Accounts at year end?

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Answer #1

Please find the attached solution.

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$10875 will be credited to uncollectible allowance at the year end.

The solution is attchattwith the image, please find it.

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