In 2011, Lawrence Company had gross sales of $750,000 on account and granted sales discounts of $15,000. On January 1, 2011, the Allowance for Doubtful Accounts had a credit balance of $18,000. During 2011, $30,000 of uncollectible accounts receivable were written off. Past experiences indicate that 3% of net credit sales become uncollectible. Using the percentage of credit sales method, what would be the adjusted balance in
The Allowance for Doubtful Accounts at December 31, 2011?

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The adjusted balance in the Allowance for Doubtful Accounts at December 31, 2011, would be $10,050. This is calculated by taking the beginning balance of $18,000, adding the amount of uncollectible accounts written off during the year ($30,000), and then subtracting the amount of sales discounts granted during the year ($15,000). The resulting balance is then multiplied by the percentage of net credit sales that become uncollectible (3%), which gives us $10,050.

In 2011, Lawrence Company Had Gross Sales of $750,000 on Account