On January 1, Year 2, Kincaid Company’s Accounts Receivable

On January 1, Year 2, Kincaid Company’s Accounts Receivable and the Allowance for Doubtful Accounts carried balances of 576.000 and 54,000, respectively. During the year Kincaid reported $215.000 of credit sales. Kincaid wrote off $2100 of receivables as uncollectible in Year 2. Cash collections of receivables amounted to $271.100. Kincaid estimates that it will be unable to collect one percent (1%) of credit sales.

The amount of uncollectible accounts expense recognized in the Year 2 income statement will be: Multiple Choice

a. $4.050.

b. $760.

c. $2.150.

d. $2,711.