Knowledge Check 01
During its first year of operations, Ellison, Incorporated bills customers $18,000 for the services it provided. At the end of the year, $6,000 remains due from customers. The company's credit
manager estimates that 10% of the total year-end accounts receivable will not be collected. The company's estimate of uncollectible accounts is:
Multiple Choice
$12,000
$18,000
$6,000
$600