**Domino Company Aging Schedule for Estimating Uncollectible Accounts Expense**Domino Company uses an aging schedule to estimate uncollectible accounts expenses. At the beginning of Year 2, Domino had an Accounts Receivable balance of $46,890 and an Allowance for Doubtful Accounts balance of $3,710. During Year 2, the company wrote off $2,770 in uncollectible accounts. This document outlines the aging schedule prepared to estimate uncollectible accounts expense for Year 2.**Aging Schedule:**| Number of Days Past Due | Receivables Amount | % Likely to be Uncollectible ||-------------------------|---------------------|-----------------------------|| Current | $79,000 | 1% || 0–30 | $28,800 | 5% || 31–60 | $7,660 | 10% || 61–90 | $4,020 | 25% || Over 90 | $3,700 | 50% |**Total Receivables: $123,180****Question:**What amount will be reported as uncollectible accounts expense on the Year 2 income statement?**Options:**- $2,770- $2,141- $4,911- $5,851

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Domino Company ages its accounts receivable to estimate uncollectible accounts expense. Domino began Year 2 with balances in Accounts Receivable and Allowance for Doubtful Accounts of $46,890 and $3,710, respectively. During Year 2, the company wrote off $2,770 in uncollectible accounts. In preparation for the company's estimate of uncollectible accounts expense for Year 2, Domino prepared the following aging schedule: Number of Days Past Due Current 0-30 31-60 61-90 Over 90 Total Multiple Choice What amount will be reported as uncollectible accounts expense on the Year 2 income statement? O O O O $2,770 $2,141 $4,911 Receivables Amount $ 79,000 28,800 7,660 4,020 3,700 $ 123,180 $5,851 % Likely to be Uncollectible 1% 5% 10% 25% 50%

Domino Company ages its accounts receivable to estimate uncollectible accounts expense. Domino began Year 2 with balances in Accounts Receivable and Allowance for Doubtful Accounts of $46,890 and $3,710, respectively. During Year 2, the company wrote off $2,770 in uncollectible accounts. In preparation for the company's estimate of uncollectible accounts expense for Year 2, Domino prepared the following aging schedule: Number of Days Past Due Current 0-30 31-60 61-90 Over 90 Total Multiple Choice What amount will be reported as uncollectible accounts expense on the Year 2 income statement? O O O O $2,770 $2,141 $4,911 Receivables Amount $ 79,000 28,800 7,660 4,020 3,700 $ 123,180 $5,851 % Likely to be Uncollectible 1% 5% 10% 25% 50%

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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Maxwell Inc., analyzed its accounts receivable balances at December 31, and arrived at the aged balances listed below, along with the percentage that is estimated to be uncollectible: % Considered Age Group Balance Uncollectible 0-30 days past due $300,000 1% 31-60 days past due 54,000 3% 61-120 days past due 60,000 6% 121-180 days past due 21,000 10% Over 180 days past due 6,000 20% $441,000 The company handles credit losses using the allowance method. The credit balance of the Allowance for Doubtful Accounts is $2,520 on December 31, before any adjustments. a. Determine the amount of the adjustment for estimated credit losses on December 31. b. Determine the financial statement effect of a write off of Porter Company's account on the following May 12, in the amount of $1,440. Use negative signs with answers, when appropriate. If a transaction increases and decreases the same Balance Sheet category, enter the increase amount in the first row and the decrease amount directly below (in…
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The company estimates future uncollectible accounts. The company determines $16,000 of accounts receivable on January 31 are past due, and 30% of these accounts are estimated to be uncollectible. The remaining accounts receivable on January 31 are not past due, and 4% of these accounts are estimated to be uncollectible. (Hint: Use the January 31 accounts receivable balance calculated in the general ledger.)
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