Crimson Inc

question 92

Multiple Choice

Crimson Inc.recorded credit sales of $750,000,of which $600,000 is not yet due,$100,000 is past due for up to 180 days,and $50,000 is past due for more than 180 days.Under the aging of receivables approach,Crimson Inc.expects it will not collect 1% of the amount not yet due,10% of the amount past due for up to 180 days,and 20% of the amount past due for more than 180 days.The allowance account had a debit balance of $1,000 before adjustment.After adjusting for bad debt expense,what is the ending balance of the allowance account?

• A)$29,000.
• B)$28,000.
• C)$27,000.
• D)$26,000.

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