Using the Percentage-Of-Sales Method, You Estimate That Total Uncollectible Accounts

question 55

Multiple Choice

Using the percentage-of-sales method, you estimate that total uncollectible accounts are $4,500. The Allowance for Uncollectible Accounts prior to adjustment has a credit balance of $1,400. The amount of the adjusting entry is:

• A) $5,900
• B) $4,500
• C) $3,100
• D) $1,400

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