Domino Company uses the aging of accounts receivable method to estimate uncollectible accounts expense. Domino began Year 2 with balances in Accounts Receivable and Allowance for Doubtful Accounts of $46,890 and $3,710, respectively. During the year, the company wrote off $2,770 in uncollectible accounts. In preparation for the company's Year 2 estimate, Domino prepared the following aging schedule:

Number of Days Past Due Receivables Amount % Likely to be Uncollectible
Current $82,000 1%
0-30 $29,500 5%
31-60 $7,960 10%
61-90 $4,220 25%
Over 90 $3,900 50%
Total $127,580

What will Domino record as Uncollectible Accounts Expense for 2016?

a. $6,096
b. $2,296
c. $5,116
d. $2,820

$5,156

Explanation:

The computation of the uncollectible account expense is shown below:

But for this, first we have to compute the ending balance of allowance that is shown below

Current          $82,000 × 1%  = $820

0-30               $29,500  × 5%  = $1,475

31-60              $7,960 × 10%  = $796

61-90              $4,220  × 25%  = $1,055

Over 90          $3,900 × 50% = $1,950

Total                                            $6,096

Now the uncollectible account expense is

= $6,096 + $2,770 - $3,710

= $5,156          

This is the answer but the same is not provided in the given options

a) both were commissioned explorers

there was no passage listed but using the process of elimination i'd say it was d. the high economy would do the opposite. i don't see how low prices would affect it. high unemployment is possible but i feel d is the better answer.