?

Wren Company had the following account balances at December 31:
Accounts receivable.......................... $ 900,000
Allowance for uncollectible accounts (before any provision for the year uncollectible accounts expense)......................................... 16,000
Credit sales for the year..................... 1,750,000
Wren is considering the following methods of estimating uncollectible accounts expense for the year:
? Based on credit sales at 2%
? Based on accounts receivable at 5%
What amount should Wren charge to uncollectible accounts expense under each method? Percentage of Percentage of
Credit Sales ...Accounts Receivable