Question 4 (of 22) Seve & Edt 2.00 points On January 1, 2016 Grande Company had

Question

Question 4 (of 22) Seve & Edt 2.00 points On January 1, 2016 Grande Company had a $16,000 balance in the Accounts Recelvable account and a zero balance in the Allowance for Doubtful Accounts account. During 2016, Grande pro vided $104 0 of service on account. The company collected S 000 cash om accounts receivable. ne ectible accounts are estimated to be 2% of sales on account The amount of uncolectible accounts expense recognized on the 2016 income statement is O $320 O $1.000 O $2.080 O $1.940 Objective: 07-01 Use the percent of

Explanation / Answer

Amount of uncollectible accounts expense recognized on the 2016 Income statement is:

Revenue on account $104,000

Bad debt Expense 2% of sales 104,000*2% = $2,080

So the amount of uncollectible accounts will be c. 2,080

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