On January 1, Year 2, Kincaid Company's Accounts Receivable and the Allowance for Doubtful Accounts carried balances
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Question:
On January 1, Year 2, Kincaid Company's Accounts Receivable and the Allowance for Doubtful Accounts carried balances of 576.000 and 54,000, respectively. During the year Kincaid reported $215.000 of credit sales. Kincaid wrote off $2100 of receivables as uncollectible in Year 2. Cash collections of receivables amounted to $271.100. Kincaid estimates that it will be unable to collect one percent (1%) of credit sales.
The amount of uncollectible accounts expense recognized in the Year 2 income statement will be: Multiple Choice
a. $4.050.
b. $760.
c. $2.150.
d. $2,711.
Related Book For
Introductory Financial Accounting for Business
ISBN: 978-1260299441
1st edition
Authors: Thomas Edmonds, Christopher Edmonds
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