[The Following Information Applies to the Questions Displayed Below

question 80

Multiple Choice

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

The Miller Company earned $190,000 of revenue on account during Year 1. There was no beginning balance in the accounts receivable and allowance accounts. During Year 1, Miller collected $136,000 of cash from its receivables accounts. The company estimates that it will be unable to collect 3% of its sales on account.


-What is the amount of uncollectible accounts expense that will be recognized on the Year 1 income statement?

• A)$5,700
• B)$1,320
• C)$4,080
• D)$54,000

---

Definitions:

Mitochondria

Mitochondria are membrane-bound cell organelles responsible for generating most of the chemical energy needed to power the cell's biochemical reactions.

Plasma Membrane

The lipid bilayer that encloses the cytoplasm of a cell, regulating the passage of substances in and out of the cell.

Cytoplasm

The jelly-like substance within a cell enclosed by the cell membrane, excluding the nucleus, containing organelles and the site of most cellular activities.

Lactate

A compound produced in the body during the anaerobic conversion of glucose to energy, often associated with muscle fatigue.