Accounting MCQ
Accounting
During its first year of operations, a 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 for the year-end adjusting entry for uncollectible accounts would be:
During its first year of operations, a 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 for the year-end adjusting entry for uncollectible accounts would be:
During its first year of operations, a 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 for the year-end adjusting entry for uncollectible accounts would be:
A) $15,000.
B) $4,200.
C) $6,000.
D) $10,200.
Answer: $4,200.
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