Jobin Company ended 2012 with balances in Accounts Receivable and Allowance for Doubtful Accounts of $46,000 and $1,800, respectively. During 2013, Jobin wrote off $3,000 of Uncollectible Accounts. After aging its receivables, Jobin estimates that the ending Allowance for Doubtful Accounts balance should be $3,200. What will Jobin report as Uncollectible Accounts Expense on its 2013 income statement?
A)$3,200
B)$4,400
C)$1,400
D)$3,000

Question

Quizplus · Accepted Answer

$1,800 beginning allowance balance - $3,000 write-offs + uncollectible accounts expense = $3,200 ending allowance balance; uncollectible accounts expense = $3,200 - $1,800 + $3,000 = $4,400

Jobin Company Ended 2012 with Balances in Accounts Receivable and Allowance