Question

The general ledger account for Accounts Receivable shows a debit balance of $40,000. The Allowance for Uncollectible Accounts has a credit balance of $2,000. Net sales for the year were $250,000. In the past, 3 percent of net sales have proved uncollectible. An aging of accounts receivable results in an estimate of $9,000 of uncollectible accounts receivable.

Calculate:
(1) Uncollectible Accounts Expense
(2) The ending balance of the Allowance for Uncollectible Accounts using:
(a) the percentage of net sales method
(b) the accounts receivable aging method.

Create an Excel spreadsheet as well.

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Accounting Problem

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