The following balances were drawn from the accounts of Stripling Company as of January 1, Year 2.

Part A:

During Year 2, Stripling earned $700,000 of revenue on account and collected $710,000 cash from accounts receivable. Also, the company wrote off $8,000 of accounts receivable that were classified as uncollectible during Year 2. If Stripling estimates uncollectible accounts expense to be 1% of revenue, the amount of uncollectible accounts expense recognized of December 31, Year 2 is

A. $7,000.

B. $6,900.

C .$6,920.

D.$7,100.

Part B:

During Year 2, Stripling earned $700,000 of revenue on account and collected $710,000 cash from accounts receivable. Also, the company wrote-off $8,000 of accounts receivable that were classified as uncollectible during Year 2. If Stripling estimates uncollectible accounts expense to be 1% of revenue, the Year 2 ending balance of the Allowance for Doubtful Accounts account is

A. $11,000.

B. $9,000.

C. $8,000.

D. $10,000.

Accounts Receivable Allowance for Doubtful Accounts 60,000 9,000