In 2014 Wilkinson Company Had Net Credit Sales of $1,500,000

question 44

Multiple Choice

In 2014 Wilkinson Company had net credit sales of $1,500,000. On January 1, 2014, Allowance for Doubtful Accounts had a credit balance of $36,000. During 2014, $60,000 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 $400,000, what is the required adjustment to the Allowance for Doubtful Accounts at December 31, 2014?

• A) $ 40,000
• B) $150,000
• C) $ 64,000
• D) $ 60,000

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