On December 31, Year 3, Alpha Company had an ending balance of $200,000 in its accounts receivable account and an unadjusted (current) balance in its allowance for doubtful accounts account of $300. Alpha estimates uncollectible accounts expense to be 1% of receivables. Based on this information, the amount of uncollectible accounts expense shown on the Year 3 income statement is

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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On December 31, Year 3, Alpha
Company had an ending balance of
$200,000 in its accounts receivable
account and an unadjusted (current)
balance in its allowance for doubtful
accounts account of $300. Alpha
estimates uncollectible accounts
expense to be 1% of receivables.
Based on this information, the amount
of uncollectible accounts expense
shown on the Year 3 income statement
is
Transcribed Image Text:On December 31, Year 3, Alpha Company had an ending balance of $200,000 in its accounts receivable account and an unadjusted (current) balance in its allowance for doubtful accounts account of $300. Alpha estimates uncollectible accounts expense to be 1% of receivables. Based on this information, the amount of uncollectible accounts expense shown on the Year 3 income statement is
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