The Allowance for doubtful debts currently has a credit balance of $200. The company's management estimates that 2.5% of net credit sales will be uncollectable. Net credit sales are $115 000. What will be the balance of the Allowance for doubtful debts reported on the balance sheet?
A)$3 275
B)$2 875
C)$3 075
D)$2 675

Question

Quizplus · Accepted Answer

The Answer of The Allowance for doubtful debts currently has a credit balance of $200. The company's management estimates that 2.5% of net credit sales will be uncollectable. Net credit sales are $115 000. What will be the balance of the Allowance for doubtful debts reported on the balance sheet?
A)$3 275
B)$2 875
C)$3 075
D)$2 675

The Allowance for Doubtful Debts Currently Has a Credit Balance