The Following Information Pertains to Lightning,Inc

question 76

Multiple Choice

The following information pertains to Lightning,Inc.at the end of the year:
Lightning uses the percentage-of-credit-sales method and estimates 1% of sales are uncollectible.What is the ending balance of the allowance account after the year-end adjustment?

• A)$600.
• B)$1,000.
• C)$200.
• D)$1,200.