Gross Accounts Receivable is $17,000.Allowance for Doubtful Accounts has a credit balance of $100.Net credit sales for the year are $120,000.In the past,2% of credit sales had proved uncollectible,and an aging of the receivables indicates $2,100 as uncollectible.What would be the adjusted balance of the Allowance account under the balance sheet approach?
A)$2,000
B)$2,500
C)$2,100
D)$2,200

Question

Quizplus · Accepted Answer

Under the balance sheet approach, the Allowance for Doubtful Accounts is adjusted to reflect the estimated uncollectible accounts based on the aging of receivables, which is $2,100.

Gross Accounts Receivable Is $17,000