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At the beginning of Year 3 Omega Company had a $ 5 8 , 5 0 0 balance in its accounts receivable account and a

At the beginning of Year 3 Omega Company had a $58,500 balance in its accounts receivable account and a $7,900 balance in allowance for doubtful accounts. During Year 3 Omega experienced the following events.
(1) Earned $246,000 of revenue on account.
(2) Collected $243,000 cash from accounts receivable.
(3) Wrote off $6,200 of accounts receivable as uncollectible.
Omega estimates uncollectible accounts to be 4% of receivables. The December 31, Year 3 unadjusted (current) balance in the allowance for doubtful accounts account (balance before expense recognition) is:
Multiple Choice
$1,700.
$14,100.
$2,092.
$392.

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