Question

Allegheny Company ended Year 1 with balances in Accounts Receivable and Allowance for Doubtful Accounts of $66,000 and $3,300, respectively. During Year 2, Allegheny wrote off $6,000 of Uncollectible Accounts. Using the percent of receivables method, Allegheny estimates that the ending Allowance for Doubtful Accounts balance should be $5,200. What amount will Allegheny report as Uncollectible Accounts Expense on its Year 2 income statement

Answer 1

Answer:

$5,200

Explanation:

Based on the information given we were told that the company estimated that the Allowance for Doubtful Accounts ending balance should be the amount of $5,200 which therefore means that the amount that will be reported as UNCOLLECTIBLE ACCOUNTS EXPENSE on its Year 2 income statement by the company will be the estimated Allowance for Doubtful Accounts ending balance of the amount of $5,200.