Ask Question
BusinessBusiness
29 August, 00:10

At January 1, 2013, Simpson Co. had a credit balance of $260,000 in its allowance for uncollectible accounts. Based onpast experience. 2 percent of Simpson's credit sales have been uncollectible. During 2013. Simpson wrote off 5325.000 ofaccounts receivable. Credit sales for 2013 were $9.000,000. In its December 31. 2013. balance sheet, what amount shouldSimpson report as allowance for uncollectible accounts? a. 5115.000b. 5180.000c. $245,000d. $440,000

+5
Answers (1)
  1. 29 August, 00:14
    0
    Option (a) is correct.

    Explanation:

    Given that,

    Allowance for uncollectible accounts balance January 1 = $260,000

    Accounts receivable Written off = $325,000

    Credit sales for 2013 = $9,000,000

    Percent of Credit sales uncollectible = 2%

    Allowance for uncollectible accounts balance December 31:

    = Allowance for uncollectible accounts balance January 1 - Written off + Bad debts expense

    = $260,000 - $325,000 + (,9000,000 * 2%)

    = $260,000 - $325,000 + $180,000

    = $115,000
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “At January 1, 2013, Simpson Co. had a credit balance of $260,000 in its allowance for uncollectible accounts. Based onpast experience. 2 ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
For which of the countries described is a trade deficit most beneficial? A country with a lower-than-optimal savings rate. A country with a strong preference for imported consumption goods. No country benefits from a trade deficit.
Answers (1)
A company's long-term solvency A) can be measured by the gross profit percentage. B) can be measured by the days to collect receivables ratio. C) depends on the success of its operations and on its ability to raise capital for expansion.
Answers (1)
Select the correct answer Zoe realizes that employee productivity has dropped over the past few months. She realizes there is a need for employee motivation at her company.
Answers (1)
List three disadvantages to sole proprietorships.
Answers (1)
acquired 20600 shares of its own common stock at $18 per share on February 5, 2020, and sold 10300 of these shares at $25 per share on August 9, 2021.
Answers (1)
New Questions in Business
Sharp Focus Cameras is facing intense competitive pressure. Top marketing managers are looking for ways to cut costs. They are considering a plan to cut distribution costs by eliminating marketing intermediaries from the channel of distribution.
Answers (1)
Older adults who participated in 20 one-hour video game training sessions with the program lumosity showed reduction in their:
Answers (1)
The total of tools, equipment, machinery, and buildings used to produce goods and services is called supply. True or False
Answers (1)
What percentage of federal revenues is made up of corporate taxes
Answers (1)
F Rudy offers Oscar $200 for his laptop valued at $600 and Oscar agrees, a court will probably
Answers (1)
Home » Business » At January 1, 2013, Simpson Co. had a credit balance of $260,000 in its allowance for uncollectible accounts. Based onpast experience. 2 percent of Simpson's credit sales have been uncollectible. During 2013. Simpson wrote off 5325.
Sign Up Forgot Password?