At the end of year one, Boller Co. had an ending balance in allowance for uncollectible accounts of
$30,000. During year two, Boller wrote-off $40,000 of accounts receivable. At the end of year two, Boller
had $300,000 in accounts receivable and determined that 8% of these would be uncollectible. What
amount should be reported as uncollectible accounts expense on Boller's year two income statement?
A. $64,000
B. $34,000
C. $24,000
D. $14,000
Answer B!!
Could anyone explain why not C? (300,000 * 8%)
.