Multiple Choice
[The following information applies to the questions displayed below.]
The Miller Company earned $190,000 of revenue on account during Year 1. There was no beginning balance in the accounts receivable and allowance accounts. During Year 1, 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.
-What is the amount of uncollectible accounts expense that will be recognized on the Year 1 income statement?
A) $5,700
B) $1,320
C) $4,080
D) $54,000
Correct Answer:
Verified
Correct Answer:
Verified
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