A Company Has an Ending Accounts Receivable Balance of $900,000

question 114

Multiple Choice

A company has an ending accounts receivable balance of $900,000 and it estimates that uncollectible accounts will be 2% of the receivable balance. 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) $20,000.
• B) $18,000.
• C) $17,960.
• D) $16,000.