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Allegheny Company ended Year with balances in Accounts Receivable and Allowance for Doubtful Accounts of $56,000 and $2,550, respectively. During Year 2, Allegherty wrote of
Allegheny Company ended Year with balances in Accounts Receivable and Allowance for Doubtful Accounts of $56,000 and $2,550, respectively. During Year 2, Allegherty wrote of $4,500 of Uncollectible Accounts. Using the percent of receivables method, Allegheny estimates that the ending Allowance for Doubtful Account balance should be $4,200. What amount will Allegheny report as Uncollectible Accounts Expense on its Year 2 income statement? Multiple Choice $4,200 $1,650 $4,500 $6,150
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