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Posted: October 1st, 2022
Kentucky ACC ACC201 Dynamic, Inc. had credit sales of $690,000 for March.
Dynamic, Inc. had credit sales of $690,000 for March. Accounts receivable of $9,500 were determined to be worthless and were written off during March. Accounts receivable total $527,000 at March 31. Management feels that based on past experience, approximately 4% of net credit sales will prove to be uncollectible.Assuming Dynamic, Inc. uses the direct write-off method of accounting for uncollectible accounts, uncollectible accounts expense for March is:A.$21,080.B.$30,580.C.$27,600.D.$9,500.Assuming Dynamic, Inc. uses the income statement approach (an allowance method) to account for uncollectible accounts, uncollectible accounts expense for March is:A.$27,600.B.$30,580.C.$37,100.D.$21,080.
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