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Domino Company uses the percent of receivables method to estimate uncollectible accounts expense. Domino began 2016 with balances in Accounts Receivable and Allowance for Doubtful
Domino Company uses the percent of receivables method to estimate uncollectible accounts expense. Domino began 2016 with balances in Accounts Receivable and Allowance for Doubtful Accounts of $76,500 and $5,800, respectively. During the year, the company wrote off $4,640 in uncollectible accounts. In preparation for the company's 2016 estimate, Domino prepared the following aging schedule:
Number of Days Past Due | Receivables Amount | % Likely to be Uncollectible |
Current | $ 104,000 | 1% |
0-30 | 45,000 | 5% |
31-60 | 9,920 | 10% |
61-90 | 4,440 | 25% |
Over 90 | 3,800 | 50% |
Total | $ 167,160 |
What will Domino record as Uncollectible Accounts Expense for 2016?
$6,132
$1,512
$7,292
$4,640
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