Domino Company Uses the Aging of Accounts Receivable Method to Estimate

question 89

Multiple Choice

Domino Company uses the aging of accounts receivable method to estimate uncollectible accounts expense. Domino began Year 2 with balances in Accounts Receivable and Allowance for Doubtful Accounts of $76,500 and $5,800, respectively. During the year, the company wrote off $4,640 in uncollectible accounts. In preparation for the company's Year 2 estimate, Domino prepared the following aging schedule: What will Domino record as Uncollectible Accounts Expense for Year 2?

• A) $6,132
• B) $1,512
• C) $7,292
• D) $4,640

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Definitions:

Marginal Cost

The financial outlay for producing an additional unit of a product or service.

Public Good

A product or service that is made available to all members of a society, typically funded by the public sector, and is characterized by its non-excludability and non-rivalry.

Weather Warning System

A technology or protocol designed to alert the public of impending severe weather conditions.

Toll-free Roads

are roads for which no fee is charged for use, allowing unrestricted travel without financial cost.