At the beginning of Year 3 Omega Company had a $58,000 balance in its accounts receivable account and a $7,400 balance in allowance for doubtful accounts. During Year 3, Omega experienced the following events. (1) Earned $244,000 of revenue on account. (2) Collected $242,000 cash from accounts receivable. (3) Wrote off $5,800 of accounts receivable as uncollectible. Omega estimates uncollectible accounts to be 4% of receivables. Based on this information, the amount of uncollectible accounts expense shown on the Year 3 income statement is:

At the beginning of Year 3 Omega Company had a $58,000 balance in its accounts receivable account and a $7,400 balance in allowance for doubtful accounts. During Year 3, Omega experienced the following events. (1) Earned $244,000 of revenue on account. (2) Collected $242,000 cash from accounts receivable. (3) Wrote off $5,800 of accounts receivable as uncollectible. Omega estimates uncollectible accounts to be 4% of receivables. Based on this information, the amount of uncollectible accounts expense shown on the Year 3 income statement is:

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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