On December 31,2016,prior to adjustments,Accounts Receivable has a debit balance of $356,000 and the Allowance for Doubtful Accounts has a debit balance of $1,200.The firm estimates its losses from uncollectible accounts to be 4% of accounts receivable at the end of the year.The amount of the adjusting entry needed to record the estimated losses from uncollectible accounts is:
A) $13,040
B) $14,240
C) $15,440
D) $17,800

Question

Quizplus · Accepted Answer

The Answer of On December 31,2016,prior to adjustments,Accounts Receivable has a debit balance of $356,000 and the Allowance for Doubtful Accounts has a debit balance of $1,200.The firm estimates its losses from uncollectible accounts to be 4% of accounts receivable at the end of the year.The amount of the adjusting entry needed to record the estimated losses from uncollectible accounts is:
A) $13,040
B) $14,240
C) $15,440
D) $17,800

On December 31,2016,prior to Adjustments,Accounts Receivable Has a Debit Balance