On January 1, Year 2, Grande Company had a $72,400 balance in the Accounts Receivable account and a $3200 balance in the Allowance for Doubtful Accounts account. During Year 2, Grande provided $197,000 of service on account. The company collected $239,900 cash from accounts receivable. Uncollectible accounts are estimated to be 1% of sales on account.The amount of uncollectible accounts expense recognized on the Year 2 income statement is:
A. $724.
B. $1850.
C. $2399.
D. $1970.
Answer: D
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