申論題

Lloyd Products is undecided about which base to use in.estimating uncollectible accounts. On December 31，2005 the balance in Accounts Receivable was $680,000 and net credit sales amounted to $3,900,000 during 2005. An aging analysis of the accounts receivable indicated that $38,000 in accounts are expected to be uncollectible. Past experience has shown that about % of net credit sales eventually are uncollectible.