On January 1, Year 2, Kincaid Company's Accounts Receivable and the Allowance for Doubtful Accounts carried balances of $66,200 and $1,900, respectively. During the year Kincaid reported $166,000 of credit sales. Kincaid wrote off $1,400 of receivables as uncollectible in Year 2. Cash collections of receivables amounted to $185,700. Kincaid estimates that it will be unable to collect one percent (1%) of credit sales.

The amount of uncollectible accounts expense recognized in the Year 2 income statement will be:

Multiple Choice

• $662.

• $1,857.

• $1,660.

• 2160