At the end of 2014, Duffau Company had outstanding accounts receivable of $109,760. Before recording the adjusting entry for uncollectible accounts, the balance in the Allowance for Doubtful Accounts was $350. If Duffau estimates that it will not collect 4 percent of its accounts receivable, what amount of uncollectible accounts expense should Duffau record? Round to the nearest dollar.
A) $4,040
B) $4,740
C) $4,390
D) $5,090

Question

Quizplus · Accepted Answer

Duffau estimates 4% of $109,760 will be uncollectible, which is $4,390. The existing allowance is $350, so the expense recorded should be $4,390 - $350 = $4,040.

At the End of 2014, Duffau Company Had Outstanding Accounts