E 7-3 LO3 Estimating Expected Credit Loss The trial balance of Sparkling Jewelry Company at the end of its 2022 fiscal year included the following account balances: Accounts receivable Loss allowance.... Account $66,400 1,300 (debit balance) The company has not yet recorded any expected credit loss for 2022. Determine the amount of expected credit loss to be recognized by Sparkling Jewelry Company for 2022, assuming the following independent situations: 1. An aging accounts receivable analysis indicates that probable uncollectible accounts receivable at year-end amount to $3,900. 2. Company policy is to maintain a provision for uncollectible accounts receivable equal to 4% of outstanding accounts receivable.

The trial balance of Sparkling Jewelry Company at the end of its 2022 fiscal year included the following account balances: The company has not yet recorded any expected credit loss for 2022. Determine the amount of expected credit loss to be recognized by Sparkling Jewelry Company for 2022, assuming the following independent situations: 1. An aging accounts receivable analysis indicates that probable uncollectible accounts receivable at year-end amount to $3,900. 2. Company policy is to maintain a provision for uncollectible accounts receivable equal to 46 of outstanding accounts receivable