Use the Following Information for Questions Below
Melrose Company Recorded

question 24

Multiple Choice

Use the following information for questions below
Melrose Company recorded $3,500,000 in credit sales in 2020 and prepared the following aging schedule of their $730,000 in Accounts Receivable as at December 31,2020:
$$\begin{array} { c c c } \text { Days outstanding } & \text { Balance } & \text { Estimated percentage uncollectible } \\\hline 0 - 30 \text { days } & \$ 350,000 & 1 \% \\31 - 60 \text { days } & 275,000 & 2 \% \\61 - 90 \text { days } & 67,500 & 5 \% \\\text { 0ver 90 days } & 37,500 & 25 \%\end{array}$$
The balance in their Allowance for Doubtful Accounts before year-end adjustments is a $2,000 credit.
-The balance in the Allowance for Doubtful Accounts after year-end adjustments will be

• A)$2,000.
• B)$23,750.
• C)$21,750.
• D)$19,750.

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