jonson uses the percentage of sales method to estimate uncollectibles. the net credits sales for the current year total $50,000 and the management estimates 2% will be uncollectible allowance. the doubtful accounts prior to adjustment have a debit balance of $550. what will be the amount of expenses reported on the income statement?
$450
$550
$1,000
$1,500

Question

jonson uses the percentage of sales method to estimate uncollectibles. the net credits sales for the current year total $50,000 and the management estimates 2% will be uncollectible allowance. the doubtful accounts prior to adjustment have a debit balance of $550. what will be the amount of expenses reported on the income statement?
$450
$550
$1,000
$1,500

rissyroo118 · Answer

@mathmate my last one :)

mathmate · Answer

what's your take?

rissyroo118 · Answer

i'm not exactly sure about this , im messing with my calc at the moment messing with the problem

rissyroo118 · Answer

okay well i just read what it meant to use the percentage of sales method. so i believe it would be $550 , $550 will be reported on the income statement @MrNood @mathmate

mathmate · Answer

But you didn't use the percentage method, did you?

rissyroo118 · Answer

im not sure i remember how too. @mathmate

rissyroo118 · Answer

$50,000x0.2=10,000

rissyroo118 · Answer

@Vocaloid

vocaloid · Answer

hm, I'm not sure

vocaloid · Answer

some of the phrases/terms in this problem are unfamiliar to me

rissyroo118 · Answer

could you tag someone who may understand? (: as suggestions need to be guided because i can't come up with the correct answer

mathmate · Answer

2% is 0.02!  lol  @rissyroo118

rissyroo118 · Answer

i don't understand how i always mess those percentages up!! lol

rissyroo118 · Answer

C. 1,000 @mathmate (: