On January 1, Year 2, Grande Company had a $71,000 balance in the Accounts Receivable account and a $2,900 balance in the Allowance for Doubtful Accounts account. During Year 2, Grande provided $190,000 recognized service revenue on account. The company collected $227,700 cash from accounts receivable. Uncollectible accounts are estimated to be 1% of sales on account. The amount of uncollectible accounts expense recognized on the Year 2 income statement is:

On January 1, Year 2, Grande Company had a $71,000 balance in the Accounts Receivable account and a $2,900 balance in the Allowance for Doubtful Accounts account. During Year 2, Grande provided $190,000 recognized service revenue on account. The company collected $227,700 cash from accounts receivable. Uncollectible accounts are estimated to be 1% of sales on account. The amount of uncollectible accounts expense recognized on the Year 2 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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