Net Credit Sales for the Month Are $900,000

question 188

Multiple Choice

Net credit sales for the month are $900,000.The accounts receivable balance is $192,000.The allowance is calculated as 5% of the receivables balance using the percentage-of-receivables basis.If the Allowance for Doubtful Accounts has a credit balance of $6,000 before adjustment, what is the balance after adjustment?

• A)$ 9,600
• B)$ 3,600
• C)$15,600
• D)$ 9,900

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