Allowance for Doubtful Accounts Has a Credit Balance of $500

question 116

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 credit sales. If credit sales are $300,000, the amount of the adjusting entry to record the estimated uncollectible accounts receivable is

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

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