Allegheny Company ended Year 1 with balances in Accounts Receivable and Allowance for Doubtful Accounts of $23,000 and $900, respectively. During Year 2, Allegheny wrote off $1,500 of Uncollectible Accounts. Using the percent of receivables method, Allegheny estimates that the ending Allowance for Doubtful Accounts balance should be $1,600. What amount will Allegheny report as Uncollectible Accounts Expense on its Year 2 income statement?

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


Answer: B

Business

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