Domino Company ages its accounts receivable to estimate uncollectible accounts expense. Domino began Year 2 with balances in accounts receivable and allowance for doubtful accounts of $76,500 and $5,800, respectively. During Year 2, the company wrote off $4,640 in uncollectible accounts. In preparation for the company's estimate of uncollectible accounts expense for Year 2, Domino prepared the following aging schedule:
Number of days past due Receivables Amount % Likely to be Uncollectible
Current $104,000 1%
0 to 30 $45,000 5%
31 to 60 $9,920 10%
61 to 90 $4,440 25%
Over 90 $3,800 50%
Total $167,160
What amount will be reported as uncollectible accounts expense on the Year 2 income statement?
a) $6,132
b) $1,512
