Allowance for Doubtful Accounts Has a Credit Balance of $500

question 101

Multiple Choice

Allowance for Doubtful Accounts has a credit balance of $500 at the end of the year before adjustment,and bad debt expense is estimated at 3% of net credit sales.If net credit sales are $300,000,the amount of the adjusting entry to record the estimated uncollectible accounts receivables is

• A)$8,500
• B)$9,500
• C)$9,000
• D)Cannot be determined

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