The Glass House, a glass and china store, sells nearly half its merchandise on credit. During the past 4 years, the following data were developed for credit sales and losses from uncollectible accounts:Year of Sales Credit Sales Losses fromUncollectible Accounts*2016 $200,000 12,700 2017 203,000 13,297 2018 213,000 13,313 2019 225,000 18,563 Total $841,000 $57,873 *Losses from uncollectible accounts are the actual losses related to sales of that year (rather than write-offs of that year).Required:1. Calculate the loss rate for each year from 2016 through 2019. Round your answers to three decimal places.YearLoss Rate2016 2017 2018 2019

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FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The Glass House, a glass and china store, sells nearly half its merchandise on credit. During the past 4 years, the following data were developed for credit sales and losses from uncollectible accounts:

Year of Sales	Credit Sales		Losses from Uncollectible Accounts*
2016		$200,000		12,700
2017		203,000		13,297
2018		213,000		13,313
2019		225,000		18,563
Total		$841,000		$57,873

*Losses from uncollectible accounts are the actual losses related to sales of that year (rather than write-offs of that year).

Required:

1. Calculate the loss rate for each year from 2016 through 2019. Round your answers to three decimal places.

Year	Loss Rate
2016
2017
2018
2019

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