A Company Has Net Credit Sales of $900,000 for the Year

question 19

Multiple Choice

A company has net credit sales of $900,000 for the year and it estimates that uncollectible accounts will be 2% of sales. If Allowance for Doubtful Accounts has a credit balance of $1,000 prior to adjustment, its balance after adjustment will be a credit of

• A) $18,000.
• B) $19,000.
• C) $17,980.
• D) $17,000.

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