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Echo Company started the year with a $4,000 balance in accounts receivable and a $200 balance in the allowance for doubtful accounts. The company had credit sales of $20,000, collections on accounts receivable of $19,000, and wrote off uncollectible accounts of $100 during the year. The company believes that 3 percent of its credit sales will be uncollectible.
Problem 1: The amount of uncollectable accounts expense appearing on the year's income statement would be
A. $200B. $300C. $600D. $700
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