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

question 73

Multiple Choice

Using the percentage-of-sales method, you estimate that total uncollectible accounts is $5,875. The Allowance for Uncollectible Accounts prior to adjustment has a credit balance of $2,635. The amount of the adjusting entry for uncollectible accounts expense is:

• A) $2,635.
• B) $3,240.
• C) $5,875.
• D) $8,510.