A Company had credit sales during the current year which amounted to $700,000. Historically, 3%...
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Finance
A Company had credit sales during the current year which amounted to $700,000. Historically, 3% of credit sales are uncollectible. If a Company uses the allowance method of recording uncollectible accounts, a proper entry for the year would be:
A. Debit Accounts Receivable, $21,000, credit Allowance for Uncollectible Accounts, $21,000
B. Debit Uncollectible Accounts Expense, $21,000, credit Accounts Receivable, $21,000
C. Debit Uncollectible Accounts Expense, $21,000, credit Allowance for Uncollectible Accounts, $21,000
D. Debit Allowance for Uncollectible Accounts, $21,000, credit Accounts Receivable, $21,000
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