The following accounts were abstracted from Oriole Company's unadjusted trial balance at December 31, 2020: Debit Credit Accounts receivable $753000 Allowance for uncollectible accounts 7800 Net credit sales $2810000 Oriole estimates that 7% of the gross accounts receivable will become uncollectible. After adjustment at December 31, 2020, the allowance for uncollectible accounts should have a credit balance of

Question

contestada

Respuesta :

abiolataiwo2015 abiolataiwo2015 · Answer 1 · 2020-12-26T01:45:20+01:00

Answer:

$52,710

Explanation:

Calculation for allowance for uncollectible accounts credit balance

Using this formula

Allowance for uncollectible accounts credit balance=Estimated gross uncollectible accounts receivable *Accounts receivable

Let plug in the formula

Allowance for uncollectible accounts credit balance=7%* $753,000

Allowance for uncollectible accounts credit balance=$52,710

Therefore After adjustment at December 31, 2020, the allowance for uncollectible accounts should have a credit balance of $52,710