Allowance for Doubtful Accounts Has a Credit Balance of $1,100

question 23

Multiple Choice

Allowance for Doubtful Accounts has a credit balance of $1,100 at the end of the year,before adjustments.Sales for the year amounted to $760,000,sales discounts amounted to $12,000 and sales returns and allowances amounted to $36,000.If the uncollectible accounts expense is estimated at 2% of net sales,the amount of the adjusting entry to record the estimated losses from uncollectible accounts will be

• A) $15,340
• B) $13,140
• C) $14,240
• D) $15,200