At the beginning of Year 3 Omega Company had a $52,000 balance in its accounts receivable account and a $1,400 balance in allowance for doubtful accounts. During Year 3, Omega experienced the following events.(1) Omega earned $220,000 of revenue on account.(2) Collected $230,000 cash from accounts receivable.(3) Wrote-off $1,000 of accounts receivable as uncollectible. Omega estimates uncollectible accounts to be 4% of receivables. Required:
1. Based on this information, the amount of uncollectible accounts expense shown on the Year 3 income statement is :a.) $1,240.b.) $2,040.c.) $1,000.d.) $1,640.