Employees usually pay the entire cost of workers' compensation ...

[dejastew]

Employees usually pay the entire cost of workers' compensation insurance.
 a. True
   b. False
   Indicate whether the statement is true or false

Question 2

On July 31, the accountant for Team Shirts was reviewing items related to accounts receivable. The following information was gathered for July. Credit sales for July were 13,700. Bad debts are estimated to be 3 of sales.
 
  The unadjusted balance in the Allowance for uncollectible accounts is (750).
 
  1. What is the amount of bad debts expense for July and on which financial statement is it found?
 
  2. What will be the amount in the Allowance for uncollectible accounts at July 31 and on which financial statement is it found?
  What will be an ideal response?

[Yixagurpuldink]

Answer to Question 1

False

Answer to Question 2

1. Bad debts expense on the income statement = 411 (13,700 x 3).
2. Allowance for uncollectible accounts = (1,161) (=(750) + (411)) on the balance sheet.