[The Following Information Applies to the Questions Displayed Below

question 79

Multiple Choice

[The following information applies to the questions displayed below.]

On January 1, Year 2 Grande Company had a $16,000 balance in the Accounts Receivable account and a zero balance in the Allowance for Doubtful Accounts account. During Year 2, Grande provided $104,000 of service on account. The company collected $97,000 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?

• A)$320
• B)$1,000
• C)$2,080
• D)$1,940

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Definitions:

Deinstitutionalization

Transitioning from prolonged inpatient psychiatric care to community-based mental health support for individuals suffering from mental health conditions.

Severe Disturbances

Intense disruptions in thoughts, emotions, or behavior, often indicative of profound psychological or mental health issues.

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The act of moving back and forth between two places frequently or to transfer objects or individuals in a similar manner.

Mental Illness

A wide selection of conditions affecting mental well-being, including changes in mood, thinking, and actions.