The following information pertains to lightning inc., at the end of the year: credit sales $ 70,000 accounts payable 12,200 accounts receivable 9,000 allowance for uncollectible accounts $ 1,400 credit cash sales 39,000 lightning uses the percentage-of-credit-sales method and estimates 8% of sales are uncollectible. what is the ending balance of the allowance account after the year-end adjustment?

The ending balance of the allowance account after the year-end would be $7,000.

An allowance is an amount of money given, normally at regular intervals, for a specific purpose. The person who provides the allowance usually attempts to control how or when money is spent by the receiver so that it meets the aims of the person providing the money.

given that,

Balance in allowance of uncontrollable account = $1,400,

Total Bad debts =

The ending balance of allowance:

Opening balance of uncollectable amount=A,

Total bad debts= B,

Closing the balance of the uncollectable amount.= C.

Therefore, the amount of ending balance would be$7,000.

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