Uncollectible accounts are determined by the percent-of-sales method to be 22 % of credit sales. How much is uncollectible-account expense for 20142014 ?

Therefore uncollectibel account expense = 0.22 x 94,000 = $20,680

Explanation:

Uncollectible accounts are determined by the percent-of-sales method to be 22 % of credit sales. How much is uncollectible-account expense for 2014 ?

Uncollectible Accounst will simply be 22% multiplied by the credit sales figure for the year.

Accounts Receivable ... 26,000

Allowance for collectible account ... 1,500

Credit sales for 2014 ... $94,000

Cash Sales for 2014 ... 28,000

Collection from customers on account ... 100,000

Therefore uncollectibel account expense = 0.22 x 94,000 = $20,680