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Domino Company ages its accounts receivable to estimate uncollectible accounts expense. Domino began Year 2 with balances in Accounts Receivable and Allowance for Doubtful
Domino Company ages its accounts receivable to estimate uncollectible accounts expense. Domino began Year 2 with balances in Accounts Receivable and Allowance for Doubtful Accounts of $40,550 and $3,110, respectively. During Year 2, the company wrote off $2,440 in uncollectible accounts. In preparation for the company's estimate of uncollectible accounts expense for Year 2, Domino prepared the following aging schedule: Number of Days Past Due Current 0-30 31-60 61-90 Receivables Amount % Likely to be Uncollectible $ 59,000 1% 24,200 5% 5,660 10% 2,720 25% 2,400 50% $ 93,980 Over 90 Total What amount will be reported as uncollectible accounts expense on the Year 2 income statement? Multiple Choice
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