Question

The Gregg Corporation had cash sales of $13,000,000 and credit sales of $19,000,000. Its gross profit averages 35 percent of sales. The company predicts that 97 percent of its credit sales will be collected. Calculate the company's uncollectible accounts expense.

$57,000

$960,000

$570,000

$390,000

 

a.

$57,000

 

b.

$960,000

 

c.

$570,000

 

d.

$390,000