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Allegheny Company ended Year 1 with balances in Accounts Receivable and Allowance for Doubtful Accounts of $72,000 and $3,750, respectively. During Year 2, Allegheny wrote
Allegheny Company ended Year 1 with balances in Accounts Receivable and Allowance for Doubtful Accounts of $72,000 and $3,750, respectively. During Year 2, Allegheny wrote off $6,900 of Uncollectible Accounts. Using the percent of receivables method, Allegheny estimates that the ending Allowance for Doubtful Accounts balance should be $5,800. What amount will Allegheny report as Uncollectible Accounts Expense on its Year 2 income statement? Multiple Choice $6.900 $2,050 $5,800 $8.950
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