Multiple Choice $1,620. $654. $1,970. $1,789. On January 1, Year 2, Kincaid Comp

Question

Multiple Choice

$1,620.

$654.

$1,970.

$1,789.

On January 1, Year 2, Kincaid Company's Accounts Receivable and the Allowance for Doubtful Accounts carried balances of $65,400 and $1,700, respectively. During the year Kincaid reported $162,000 of credit sales. Kincaid wrote off $1,350 of receivables as uncollectible in Year 2. Cash collections of receivables amounted to $178,900. 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:

Explanation / Answer

Uncollectible Accounts Expese recognised in the Year2 income statement will be 1620

1% of Credit Sale 162000= 1620

Related Questions

Navigate

• Browse (All)
• Browse M
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.