Joey

Business

25 May, 05:10

Domino Company uses the aging of accounts receivable method to estimate uncollectible accounts expense. Domino began Year 2 with balances in Accounts Receivable and Allowance for Doubtful Accounts of $76,500 and $5,800, respectively. During the year, the company wrote off $4,640 in uncollectible accounts. In preparation for the company's Year 2 estimate, Domino prepared the following aging schedule:

Number of Days Past Due - Receivables Amount - % Likely to be Uncollectible

Current - $ 104,000 - 1%

0-30 - 45,000 - 5%

31-60 - 9,920 - 10%

61-90 - 4,440 - 25%

Over 90 - 3,800 - 50%

Total - $ - 167,160

What will Domino record as Uncollectible Accounts Expense for 2016?

a. $6,132

b. $1,512

c. $7,292

d. $4,640