On December 31, Year 3, Alpha Company had an ending balance of $400,000 in its accounts receivable account and an unadjusted (current)balance in its allowance for doubtful accounts account of $600. Alpha estimates uncollectible accounts expense to be 1% of receivables. Based on this information, the amount of uncollectible accounts expense shown on the Year 3 income statement is

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The amount of uncollectible accounts expense is $4,000, which is calculated as 1% of the ending balance of accounts receivable ($400,000).

On December 31, Year 3, Alpha Company Had an Ending