Edsel Inc Has the Following Unadjusted Year End Trial Balance Information

Edsel Inc. has the following unadjusted year end trial balance information available for 2014:
$$\begin{array} { l r } \text { Cash sales } & \$ 400,000 \\\text { Credit sales } & 600,000 \\\text { Ending accounts receivable balance } & 180,000 \\\text { Ending allowance for uncollectibles } & 1,500 \\\text { Estimated uncollectibles } & 2 \%\end{array}$$
-If Edsel uses the gross accounts receivable approach for estimating bad debt expense,the allowance for uncollectibles account after the proper adjustments to the accounts are recorded,should show a balance of

A) $2,600.
B) $3,600.
C) $5,600.
D) $6,200.

Correct Answer:

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