Solution to Receivables MCQ Problems Part 1

Hello. Here are the solutions for three MCQ Problems regarding Receivables: 1. A trial balance before adjustments included the following: Sales, $850,000; Sales returns and allowance, ;$28,000; Accounts receivable, 86,000; Allowance for doubtful accounts, 1,520 a. If the estimate of uncollectibles is made by taking 2% of net sales, the amount of the adjustment is ____________ b. If the estimate of uncollectibles is made by taking 10% of gross account receivables, the amount of the adjustment is ______________ 2. Lankton Company has the following account balances at year-end: Accounts receivable, $80,000; Allowance for doubtful accounts, 4,800; Sales discounts, 3,200 Lankton should report accounts receivable at a net amount of: _________