In 2016 Winslow Company Had Net Credit Sales of $1250000

question 87

Multiple Choice

In 2016 Winslow Company had net credit sales of $1250000. On January 1 2016 Allowance for Doubtful Accounts had a credit balance of $25000. During 2016 $32000 of uncollectible accounts receivable were written off. Past experience indicates that the allowance should be 10% of the balance in receivables (percentage of receivables basis) . If the accounts receivable balance at December 31 was $360000 what is the required adjustment to the Allowance for Doubtful Accounts at December 31 2016?

• A) $29000
• B) $36000
• C) $43000
• D) $6000