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Domino Company uses the aging of accounts receivable method to estimate uncollectible accounts expense. Domino began Year 2 with balances in Accounts Receivable and Allowance
Domino Company uses the aging of accounts receivable method to estimate uncollectible accounts expense. Domino began Year 2 with balances in Accounts Receivable and Allowance for Doubtful Accounts of $44,970 and $3,530, respectively. During the year, the company wrote off $2,670 in uncollectible accounts. In preparation for the company's Year 2 estimate, Domino prepared the following aging schedule: Number of Days Past Due Current 0 to 30 31 to 60 61 to 90 Over 90 Total Receivables Amount $ 73,000 27,400 7,060 3,620 3,300 $114,380 Percentage Likely to Be Uncollectible 1% 5% 108 253 508 What will Domino record as Uncollectible Accounts Expense for Year 2? What will Domino record as Undollectible Accounts Expense for Year 2? Multiple Choice $4,501 $5,361 O $2,670 $1,831
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