Find what amount of uncollectible account expense recognized

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Problem 1: On January 1, 2011, Chase Company's Accounts Receivable and the Allowance for Doubtful Accounts carried balances of $68,500 and $1,170 (credit), respectively. During the year Chase reported $141,700 of credit sales. Chase wrote off $2,800 of receivables as uncollectible in 2011. Cash collections of receivables amounted to $152,500. Chase estimates that it will be unable to collect four percent (4%) of credit sales. The amount of uncollectible accounts expense recognized in the 2011 income statement will be:

A. $2,800

B. $10,800

C. $5,668

D. $2,740

Reference no: EM132953420

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