Olin Company had accounts receivable of $449,000. Before it recorded the adjusting entry for uncollectible accounts, the balance in the Allowance for Doubtful Accounts was $870. Olin estimates that it will not collect 3 percent of its accounts receivable. What amount of uncollectible accounts expense should be recorded?
A) $12,600
B) $10,860
C) $11,730
D) $13,470

Question

Quizplus · Accepted Answer

Olin estimates that it will not collect 3 percent of its accounts receivable, which is $449,000 x 3% = $13,470. Therefore, the amount of uncollectible accounts expense that should be recorded is $13,470.

Olin Company Had Accounts Receivable of $449,000