Davidoff Company reported net credit of $735,000 on account for the year ending December 31,2016.On January 1,2016,the Allowance for Doubtful Accounts had a credit balance of $18,000.During 2016,$30,000 of uncollectible accounts receivable were written off.Davidoff has experienced bad debt losses of 3% of credit sales in prior periods.Using the percentage of credit sales method,what is the adjusted balance in the Allowance for Doubtful Accounts at December 31,2016?
A) $10,050
B) $10,500
C) $22,050
D) $34,500

Question

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The Answer of Davidoff Company reported net credit of $735,000 on account for the year ending December 31,2016.On January 1,2016,the Allowance for Doubtful Accounts had a credit balance of $18,000.During 2016,$30,000 of uncollectible accounts receivable were written off.Davidoff has experienced bad debt losses of 3% of credit sales in prior periods.Using the percentage of credit sales method,what is the adjusted balance in the Allowance for Doubtful Accounts at December 31,2016?
A) $10,050
B) $10,500
C) $22,050
D) $34,500

Davidoff Company Reported Net Credit of $735,000 on Account for the Year