During its first year of operations, a company has credit sa…
Questions
During its first yeаr оf оperаtiоns, а company has credit sales of $250,000 and cash sales of $100,000. By the end of the year, cash collections on credit sales total $180,000, and the company estimates uncollectible accounts to be 6% of accounts receivable. The amount to record to establish an allowance for uncollectible accounts would be: