A company has net sales of $100,000 during the year.At year end (before an adjustment is made),Allowance for Uncollectible Accounts has a credit balance of $5,000.If the company estimates that 3 percent of net sales are uncollectible and the company uses percentage of net sales method,what is the balance in the allowance account after the year-end adjustment has been made?
a.$3,000 debit balance
b.$3,000 credit balance
c.$8,000 credit balance
d.$2,000 debit balance

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The Answer of A company has net sales of $100,000 during the year.At year end (before an adjustment is made),Allowance for Uncollectible Accounts has a credit balance of $5,000.If the company estimates that 3 percent of net sales are uncollectible and the company uses percentage of net sales method,what is the balance in the allowance account after the year-end adjustment has been made?
a.$3,000 debit balance
b.$3,000 credit balance
c.$8,000 credit balance
d.$2,000 debit balance

A Company Has Net Sales of $100,000 During the Year