Allegheny Company Ended 2015 with Balances in Accounts Receivable and Allowance

question 99

Multiple Choice

Allegheny Company ended 2015 with balances in Accounts Receivable and Allowance for Doubtful Accounts of $23,000 and $900,respectively.During 2016,Allegheny wrote off $1,500 of Uncollectible Accounts.After aging its receivables,Allegheny estimates that the ending Allowance for Doubtful Accounts balance should be $1,600.What will Allegheny report as Uncollectible Accounts Expense on its 2016 income statement?

• A)$2,200
• B)$1,500
• C)$700
• D)$1,600

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Definitions:

Required Rate Of Return

The minimum percentage return an investor expects to receive from an investment to compensate for its risk.

Initial Cash Investment

The amount of cash used to fund a new investment or project at its outset.

Salvage Value

The anticipated amount to be received from the sale of an asset when it is no longer useful.

Cash Flow

The total amount of money being transferred into and out of a business, which is used for assessing its liquidity, operational efficiency, and financial health.