Allegheny Company ended Year 1 with balances in Accounts Receivable and Allowance for Doubtful Accounts of $68,000 and $3450, respectively. During Year 2, Allegheny wrote off $6300 of Uncollectible Accounts. Using the percent of receivables method, Allegheny estimates that the ending Allowance for Doubtful Accounts balance should be $5400. What amount will Allegheny report as Uncollectible Accounts Expense on its Year 2 income statement?

A. $1950
B. $5400
C. $6300
D. $8250


Answer: D

Business

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