In 2015, Boyle Company Had Credit Sales of $1,080,000 and Granted

question 75

Multiple Choice

In 2015, Boyle Company had credit sales of $1,080,000 and granted sales discounts of $24,000. On January 1, 2015, Allowance for Doubtful Accounts had a credit balance of $26,400. During 2015, $45,000 of uncollectible accounts receivable were written off. Past experience indicates that 3% of net credit sales become uncollectible. What should be the adjusted balance of Allowance for Doubtful Accounts at December 31, 2015?

• A)$13,080
• B)$13,800
• C)$31,680
• D)$39,720

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