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As of January 1, 2021, Farley Co. had a credit balance of $520,000 in its allowance for uncollectible accounts. Based on experience, 2% of Farley's credit sales have been uncollectible. During 2021, Farley wrote off $650,000 of accounts receivable. Credit sales for 2021 were $18,000,000. In its December 31, 2021, balance sheet, what amount should Farley report as allowance for uncollectible account

Respuesta :

innthomas00158

Answer:

$360,000

Explanation:

Allowance for uncollectible had a credit entry of 2% of $18,000000 being the approved uncollectible allowance. Hence $360,000(2%*18000000) is charged to the account after the account has been previously debited to the tune of $520,000 to take care of a write off of $650,000.

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