The Allowance for Doubtful Debts Account Had a Balance of $4500

question 22

Multiple Choice

The allowance for doubtful debts account had a balance of $4500 before bad debts of $1000 were written off and the allowance was adjusted to 10% of the accounts receivable balance of $22 000. The new amount of allowance for doubtful debts that is deducted from accounts receivable in the balance sheet is:

• A) $1400.
• B) $2200.
• C) $1200.
• D) $1000.