Question
On January 1, Year 2, Kincaid Company's Accounts Receivable and the Allowance for Doubtful Accounts carried balances of $62,600 and $1,100, respectively. During the year
On January 1, Year 2, Kincaid Company's Accounts Receivable and the Allowance for Doubtful Accounts carried balances of $62,600 and $1,100, respectively. During the year Kincaid reported $148,000 of credit sales. Kincaid wrote off $1,150 of receivables as uncollectible in Year 2. Cash collections of receivables amounted to $154,500. 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
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$1,480.
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$1,430.
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$626.
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$1,545.
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