On January 1, Year 2, Kincaid Company's Accounts Receivable and the Allowance for Doubtful Accounts carried balances of $66,800 and $2,000, respectively. During Year 2, Kincaid reported $169,000 of credit sales, wrote off $1,450 of receivables as uncollectible, and collected cash from receivables amounting to $191,100. Kincaid estimates that it will be unable to collect one percent (1%)of credit sales.What is the amount of uncollectible accounts expense that will be reported on the Year 2 income statement?

Question

Quizplus · Accepted Answer

The uncollectible accounts expense is estimated as 1% of credit sales, which is 1% of $169,000, resulting in $1,690.