Question

Kolker Company uses the​ percent-of-sales method to estimate uncollectibles. Net credit sales for the current year amount to $ 150 comma 000​, and management estimates 3​% will be uncollectible. The amount of expense to report on the income statement was $ 4 comma 500. The Allowance for Uncollectible Accounts prior to adjustment has a credit balance of $ 1 comma 000. The balance of Allowance for Uncollectible​ Accounts, after​ adjustment, will be A. $ 4 comma 500. B. $ 5 comma 200. C. $ 5 comma 500. D. $ 500.

Answer 1

The balance of Allowance for Uncollectible​ Accounts, after​ adjustment, will be A. $ 4 comma 500.

Step-by-step explanation:

Net credit sales 150000

Uncollectible 3% 4500

Expense 4500

Uncollectible 1000

Uncollectible 4500