At the End of 2014, Duffau Company Had Outstanding Accounts

Multiple Choice

At the end of 2014, Duffau Company had outstanding accounts receivable of $109,760. Before recording the adjusting entry for uncollectible accounts, the balance in the Allowance for Doubtful Accounts was $350. If Duffau estimates that it will not collect 4 percent of its accounts receivable, what amount of uncollectible accounts expense should Duffau record? Round to the nearest dollar.

A) $4,040
B) $4,740
C) $4,390
D) $5,090