Question
In: Accounting
Domino Company uses the aging of accounts receivable method to estimate uncollectible accounts expense. Domino began...
Domino Company uses the aging of accounts receivable method to estimate uncollectible accounts expense. Domino began Year 2 with balances in Accounts Receivable and Allowance for Doubtful Accounts of $44,010 and $3,440, respectively. During the year, the company wrote off $2,620 in uncollectible accounts. In preparation for the company's Year 2 estimate, Domino prepared the following aging schedule:
| Number of days | Receivables | % Likely to be | |||||||
| past due | amount | uncollectible | |||||||
| Current | $ | 70,000 | 1% | ||||||
| 0-30 | 26,700 | 5% | |||||||
| 31-60 | 6,760 | 10% | |||||||
| 61-90 | 3,420 | 25% | |||||||
| Over 90 | 3,100 | 50% | |||||||
| Total | $ | 109,980 | |||||||
What will Domino record as Uncollectible Accounts Expense for Year 2?
Multiple Choice
$4,296
$5,116
$1,676
$2,620
Solutions
ekkarill92 answered 9 months agoRelated Solutions
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$
$
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previously written-off accounts receivable were reinstated during
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