On January 1, Year 2 Grande Company had a $19,000 balance in the Accounts Receivable account and a zero balance in the Allowance for Doubtful Accounts account. During Year 2, Grande provided $74,000 of service on account. The company collected $70,500 cash from accounts receivable. Uncollectible accounts are estimated to be 2% of sales on account.What is the amount of uncollectible accounts expense recognized on the Year 2 income statement?

Question

Quizplus · Accepted Answer

The estimated amount of uncollectible accounts is 2% of $74,000 service on account, which is $1,480. This amount should be recognized as uncollectible accounts expense on the Year 2 income statement.

On January 1, Year 2 Grande Company Had a $19,000