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Use the Following Information for Questions
a Trial Balance

Question 54

Multiple Choice

Use the following information for questions
A trial balance before adjustments included the following:  Debit  Credit  Sales $425,000 Sales returns and allowance $14,000 Accounts receivable 43,000 Allowance for doubtful accounts 760\begin{array}{lrr}&\text { Debit } & \text { Credit }\\\hline\text { Sales } & & \$ 425,000 \\\text { Sales returns and allowance } & \$ 14,000 & \\\text { Accounts receivable } & 43,000 & \\\text { Allowance for doubtful accounts } & & 760\end{array}
-If the estimate of uncollectibles is made by taking 2% of net sales, the amount of the adjustment is


A) $6,700.
B) $8,220.
C) $8,500.
D) $9,740.

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