Problem
Anderson Company had the following information in 2014.
Accounts receivable 12/31/14. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $8,000
Allowance for uncollectible account 12/31/14 (before adjustment). . . . . . 700
Credit sales during 2014. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46,000
Cash sales during 2014. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11,000
Collections from customers on account during 2014. . . . . . . . . . . . . . . . 40,000
Uncollectible accounts are determined by the percent-of-sales method to be 44% of credit sales. How much is uncollectible-account expense for 2014?
A. $1,840
B. $320
C. $700
D. $2,280