Data for the year ended december 31 are presented below: sales (credit) $2,500,000 sales returns and allowances 50,000 accounts receivable (december 31) 640,000 allowance for doubtful accounts (before adjustment at december 31) 20,000 estimated amount of uncollected accounts based on aging analysis 45,000 refer to at& u company. if the company estimates its bad debt to be 2% of net credit sales, what will be the balance in the allowance for doubtful accounts account after the adjustment for bad debts?

Allowance for Doubtful Accounts 69,000

Explanation:

If the company estimates its bad debt to be 2% of net credit sales:

sales                        2,500,000

return and allowance (50,000)

                net sales 2,450,000

Then, we calculate 2% of this amount:

2,450,000 x 0.02 = 49,000

As the uncollectible amounts are related to sales rather than account receivable we adjust for the full value giving an ending value of:

beginning 20,000 + adjustment 49,000 = 69,000

probably not? : o

unless you work at a circus or any other job like that. c:

maybe..

explanation: doctrine of respondeat superior is a legal doctrine that is commonly used in tort. this principle makes an employer or principal legally responsible for the wrongful acts done by an employee or agent, if such acts occur within the scope of the employment or agency.