Allowance for Doubtful Accounts Has a Debit Balance of $500

Question 64
Multiple Choice

Allowance for Doubtful Accounts has a debit balance of $500 at the end of the year,before adjustments.Sales for the year amounted to $870,000,sales discounts amounted to $30,000 and sales returns and allowances amounted to $40,000.If the uncollectible accounts expense is estimated at 2% of net sales,the balance in the Allowance for Doubtful Accounts after the entry to record estimated losses from uncollectible accounts will be A) $17,400 B) $16,500 C) $16,000 D) $15,500