USA Advise


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Hi, I am trying to complete an online course and there is an example / question which seems easy but I am not sure why not - advise would be appreciated.

Co.’s Balance Sheet had the following line item:
12/31/2012 12/31/2011
Accounts Receivable, net of allowances of $500 and $450, respectively $9,200 $8,400
What percentage of gross accounts receivable does CO expect to be uncollectable as of 12/31/2012?

5.15%
4.43%
5.08%
5.36%
5.01%
 
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5.15%

Gross up the receivables by adding the allowance back in (9200+500=9700). Take the % of allowance to gross receivable: 500/9700=5.15%
 

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