Blain Company Has $20,000 of Accounts Receivable That Are Current

question 167

Multiple Choice

Blain Company has $20,000 of accounts receivable that are current, $10,000 that are between 0 and 30 days past due, $6,000 that are between 30 and 60 days past due, and $1,600 that are more than 60 days past due. Blain estimates that 2% of the receivables that are current will be uncollectible, 5% of those between 0 and 30 days past due will be uncollectible, 10% of those between 30 and 60 days past due will be uncollectible, and 50% of those more than 60 days past due will be uncollectible. Just prior to recognizing uncollectible accounts expense, Blain's allowance for doubtful accounts has a $200 positive balance. Assuming Blain uses the aging method to estimate uncollectible accounts expense, the amount of uncollectible expense will be

• A)$2,100
• B)$2,500
• C)$2,300
• D)$1,900

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Definitions:

Glare

A visual condition caused by excessive brightness from direct or reflected light, leading to discomfort or reduced visibility.

Smaller

Having less size, amount, or degree compared to something else.

White Light

Light that contains all wavelengths of visible light, appearing white to the human eye.

Saturated

In chemistry, refers to a molecule containing no double or triple carbon-carbon bonds, fully "saturated" with hydrogen atoms. In everyday language, it often means completely filled or soaked.