In 2022, Wilkinson Company had net credit sales of $2,250,000.On January 1, 2022, Allowance for Doubtful Accounts had a credit balance of $54,000.During 2022, $90,000 of uncollectible accounts receivable were written off.Past experience indicates that the allowance should be 10% of the balance in receivables (percentage of receivables basis).If the accounts receivable balance at December 31 was $600,000, what is the required adjustment to the Allowance for Doubtful Accounts at December 31, 2022?
A)$ 60,000
B)$ 25,000
C)$ 96,000
D)$ 90,000

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The Answer of In 2022, Wilkinson Company had net credit sales of $2,250,000.On January 1, 2022, Allowance for Doubtful Accounts had a credit balance of $54,000.During 2022, $90,000 of uncollectible accounts receivable were written off.Past experience indicates that the allowance should be 10% of the balance in receivables (percentage of receivables basis).If the accounts receivable balance at December 31 was $600,000, what is the required adjustment to the Allowance for Doubtful Accounts at December 31, 2022?
A)$ 60,000
B)$ 25,000
C)$ 96,000
D)$ 90,000

In 2022, Wilkinson Company Had Net Credit Sales of $2,250,000