Milo Company uses the​ percent-of-sales method to estimate uncollectibles. Net credit sales for the current year amount to $ 110 comma 000​, and management estimates 1​% will be uncollectible. The Allowance for Uncollectible Accounts prior to adjustment has a credit balance of $ 1 comma 000. The amount of expense to report on the income statement will be

Respuesta :

Answer:

The amount of expense to report on the income statement will be $100

Explanation:

Net sales 110000

Estimate                1%

Uncollectible       1100

AR prior Adjusment 1000

                                  100