Gross Accounts Receivable Is $39,000

question 77

Multiple Choice

Gross Accounts Receivable is $39,000. Allowance for Doubtful Accounts has a credit balance of $300. Net credit sales for the year are $190,000. In the past, 2% of credit sales had proved uncollectible. What would be the adjusted balance of the Allowance account under the income statement approach?

• A) $4,880
• B) $4,100
• C) $3,800
• D) $3,500

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