Allowance for Doubtful Accounts Has a Debit Balance of $500

question 57

Multiple Choice

Allowance for Doubtful Accounts has a debit balance of $500 at the end of the year,before adjustments.Sales for the year amounted to $870,000,sales discounts amounted to $30,000 and sales returns and allowances amounted to $40,000.If the uncollectible accounts expense is estimated at 2% of net sales,the amount of the adjusting entry to record the estimated losses from uncollectible accounts will be

• A) $17,400
• B) $16,500
• C) $16,000
• D) $15,500

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