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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
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