The Following Information Is from the 2013 Records of Armadillo

question 150

Multiple Choice

The following information is from the 2013 records of Armadillo Camera Shop: $$\begin{array} { | l | r | } \hline \text { Accounts receivable, December 31,2013 } & \$ 20,000 \text { (debit) } \\\hline \begin{array} { l } \text { Allowance for uncollectible accounts, December 31,2013 } \\\text { prior to adjustment }\end{array} & 600 \text { (debit) } \\\hline \text { Net credit sales for 2013 } & 95,000 \\\hline \text { Accounts written off as uncollectible during 2013 } & 7,000 \\\hline \text { Cash sales during 2013 } & 27,000 \\\hline\end{array}$$
- Uncollectible accounts expense is estimated by the aging-of-accounts-receivable method.Management estimates that $2,850 of accounts receivable will be uncollectible.Which of the following will be the balance of the Allowance for uncollectible accounts after adjustment?

• A) $2,850
• B) $3,450
• C) $7,000
• D) $2,250