Gross Accounts Receivable is $15,000.Allowance for Doubtful Accounts has a credit balance of $300.Net credit sales for the year are $140,000.In the past,1% of credit sales had proved uncollectible.What would be the adjusted balance of the Allowance account under the income statement approach?
A)$2,400
B)$1,700
C)$1,400
D)$1,100

Question

Quizplus · Accepted Answer

The Answer of Gross Accounts Receivable is $15,000.Allowance for Doubtful Accounts has a credit balance of $300.Net credit sales for the year are $140,000.In the past,1% of credit sales had proved uncollectible.What would be the adjusted balance of the Allowance account under the income statement approach?
A)$2,400
B)$1,700
C)$1,400
D)$1,100

Gross Accounts Receivable Is $15,000