How to find the ncollectible Account Expense?

[easybe]

I am trying to figure out the Uncollectible Accounts Expense for this problem but I can not figure out the formula for it. I know I have to multiply net sales by the percent, but I keep getting the wrong answer. So here is the problem:


Accounts Receivable Balance, January 1, 2011 $ 125,150
Allowance for Doubtful Accounts, January 1, 2011 3,600
Sales on Account, 2011 880,240
Cost of Goods Sold, 2011 624,970
Collections of Accounts Receivable, 2011 904,851


After several collection attempts, Bay Cabinet Company wrote off $2,650 of accounts that could not be collected. Bay estimates that uncollectible accounts expense will be 1.50 percent of sales on account.


I know 880,240 * 1.50 = 13,203.6 but my answer is wrong because I have to round it to the nearest dollar amount, and I don't know what else to do.


Thanks
Tamika


UPDATE: Someone told me that I should have this as my answer:

It's 880,240 * .015 = 13,293.60 ie One Percent and a half (but I believe this person calculated wrong)

So, I am still stuck on this problem as well trying to round it to the nearest dollar (not that I don't know how to lol)

 

[Deleted member 4993]

I am trying to figure out the Uncollectible Accounts Expense for this problem but I can not figure out the formula for it. I know I have to multiply net sales by the percent, but I keep getting the wrong answer. So here is the problem:


Accounts Receivable Balance, January 1, 2011 $ 125,150
Allowance for Doubtful Accounts, January 1, 2011 3,600
Sales on Account, 2011 880,240
Cost of Goods Sold, 2011 624,970
Collections of Accounts Receivable, 2011 904,851


After several collection attempts, Bay Cabinet Company wrote off $2,650 of accounts that could not be collected. Bay estimates that uncollectible accounts expense will be 1.50 percent of sales on account.


I know 880,240 * 1.50 = 13,203.6 but my answer is wrong because I have to round it to the nearest dollar amount, and I don't know what else to do.


Thanks
Tamika


UPDATE: Someone told me that I should have this as my answer:

It's 880,240 * .015 = 13,293.60 ie One Percent and a half (but I believe this person calculated wrong)

So, I am still stuck on this problem as well trying to round it to the nearest dollar (not that I don't know how to lol)

I assume that "someone" is from:

http://answers.yahoo.com/question/index ... 511AAA3xGi

 

[easybe]

If that is you, I am sorry. But I was checking the calculation and and you had a different number from what I had, so I didn't know if it was a typo or if I was wrong, but I tried the number and it still wasn't right. I even tried this on two different calculators.