The Current Debit Balance in Allowance for Doubtful Accounts Is

question 80

Multiple Choice

The current debit balance in allowance for doubtful accounts is $465. Management estimates that 3% of net credit sales of $205,000 will be uncollectible. Based on the foregoing data, what is the allowance for doubtful accounts balance on the balance sheet?

• A)$6,150
• B)$6,615
• C)$5,685
• D)$465

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