Tanaka Company reported total sales for the current year to be $2,500,000, including cash sales of $500,000. Management estimates bad debts to be 5% of credit sales. The Allowance for Doubtful Accounts prior to adjustment has a negative balance of $10,000.
The ending balance of the Allowance for Doubtful Accounts after adjustment will be:

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The Answer of Tanaka Company reported total sales for the current year to be $2,500,000, including cash sales of $500,000. Management estimates bad debts to be 5% of credit sales. The Allowance for Doubtful Accounts prior to adjustment has a negative balance of $10,000.
The ending balance of the Allowance for Doubtful Accounts after adjustment will be:

Tanaka Company Reported Total Sales for the Current Year to Be