Use the Following to Answer Questions

Multiple Choice

Use the following to answer questions
The Miller Company earned $190,000 of revenue on account during 2016.There was no beginning balance in the accounts receivable and allowance accounts.During 2016 Miller collected $136,000 of cash from its receivables accounts.The company estimates that it will be unable to collect 3% of its sales on account.
37.The amount of uncollectible accounts expense recognized on the 2016 income statement was
A.$5,700.
B.$1,320.
C.$4,080.
D.$54,000.
Answer: A
Learning Objective: 07-01
Topic Area: Uncollectible accounts ― Percent of revenue method
AACSB: Knowledge Application
AICPA: FN Measurement
AICPA: BB Critical Thinking
Blooms: Apply
Level of Difficulty: 2 Medium
Feedback: $190,000 revenue on account x 3% = $5,700
-The net realizable value of Miller's receivables at the end of 2016 was

A) $54,000.
B) $49,920.
C) $59,700.
D) $48,300.