Domino Company uses the aging of accounts receivables method to estimate uncollectible accounts expense. Domino began year 2 with balances in Accounts Receivable and Allowance for Doubtful Accounts of $34,430 and $3,380, respectively. During the year, the company wrote off $2,590 in uncollectible accounts. In preparation for the company?s Year 2 estimate. Domino prepared the following aging schedule:

What will Domino record as Uncollectible Accounts Expense for Year 2?

Multiple Choice

a. $4,191

b. $1,601

c. $4,981

d. $2,590

Transcribed Image Text:

Number of days past due Current 0-30 31-60 61-90 Over 90 Total Receivables amount $ 68,000 26,300 6,560 3,320 3,000 $107,180 % Likely to be uncollectible 1% 5% 10% 25% 50% Number of days past due Current 0-30 31-60 61-90 Over 90 Total Receivables amount $ 68,000 26,300 6,560 3,320 3,000 $107,180 % Likely to be uncollectible 1% 5% 10% 25% 50%

Answer rating: 100% (QA)

Calculate uncollectible accounts expense Current 68000 1 68... View the full answer