Multiple Choice
[The following information applies to the questions displayed below.]
On January 1, Year 2 Grande Company had a $16,000 balance in the Accounts Receivable account and a zero balance in the Allowance for Doubtful Accounts account. During Year 2, Grande provided $104,000 of service on account. The company collected $97,000 cash from accounts receivable. Uncollectible accounts are estimated to be 2% of sales on account.
-What is the amount of uncollectible accounts expense recognized on the Year 2 income statement?
A) $320
B) $1,000
C) $2,080
D) $1,940
Correct Answer:
Verified
Correct Answer:
Verified
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