Jones Company ages its accounts receivable to estimate bad debts (uncollectible accounts) expense. Jones Company began Year 2 with balances in Accounts Receivable (rounded) and Allowance for Doubtful Accounts of $10,320 and $460, respectively. In preparation for the company's estimate of bad debts (uncollectible accounts) expense for Year 2, Jones Company prepared the following aging schedule:
Number of Days
Past Due Receivables
Amount % Likely to be
Uncollectible
Current $ 7,740 3 %
0-30 1,548 18 %
Over 30 1,032 43 %
Total $ 10,320 What amount will be reported as bad debts (uncollectible accounts) expense on the Year 2 income statement?
A. $495
B.$2,202
C.$1,415
D.$955
