Yellow Corp.'s account balances at December 31, 2013 included: Accounts Receivable, $860,000 debit; Allowance for Doubtful Accounts, $600 debit. Sales during 2013 were $1,500,000.It is estimated that 2% of sales will be uncollectible.The required adjusting entry would include a credit to the allowance account for
A)$18,000.
B)$29,400.
C)$30,000.
D)$30,600.

Question

Quizplus · Accepted Answer

The required adjusting entry would include a credit to the allowance account for $18,000 (2% of $1,500,000 sales).