Jumpin Corporation uses the percentminusofminussales method to estimate uncollectibles. Net credit sales for the current year amount to $ 2 comma 100 comma 000, and management estimates 3% will be uncollectible. The Allowance for Uncollectible Accounts prior to adjustment has a debit balance of $ 1 comma 800. The amount of Expense reported on the income statement will be:

The amount of Uncollectible Account Expense reported on the income statement will be: $ 64,800

Explanation:

Jumpin Corporation

Percent of Sales method

Net credit sales  $ 2 100  000,

Un collectible estimated 3%

Un collectibles Accounts = 3% of  $ 2 100,000, = $ 63,000

Unadjusted Allowance for Un collectible Accounts  $ 1, 800 Dr.

Required Adjustment =                                 $ 64,800

The amount of Un collectible Account Expense reported on the income statement will be: $ 64,800

In the percent of sales method emphasis is laid on the matching principle in the income statement and amount of bad debts expense is subtracted from the accounts receivables.

answer: nobody

explanation:

you can put this in your 11 sentence summary

" most of the money would be invested in innovation, economic convergence."