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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 Accounts
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 $47,850 and $3,800, respectively. During Year 2, the company wrote off $2,820 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 Receivables Amount % Likely to be Uncollectible Current $82,000 1% 0 to 30 29,500 5% 31 to 60 7,960 10% 61 to 90 4,220 25% Over 90 3,900 50% Total $127,580 What amount will be reported as uncollectible accounts expense on the Year 2 income statement? Multiple Choice $2,820 $6,096 $2,296 $5,116
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