A Company Has Total Accounts Receivable of $500,000 for the Year

question 73

Multiple Choice

A company has total accounts receivable of $500,000 for the year and it estimates that uncollectible accounts will be 3% of accounts receivable. If Allowance for Doubtful Accounts has a credit balance of $2,000 prior to adjustment, its balance after adjustment will be a credit of

• A) $17,000.
• B) $13,000.
• C) $14,940.
• D) $15,000.

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