Gross Accounts Receivable Is $12,000

Gross Accounts Receivable is $12,000.Allowance for Doubtful Accounts has a credit balance of $600.Net sales for the year are $100,000.In the past,2% of sales had proved uncollectible,and an aging of the receivables indicates $1,900 as uncollectible.What would be the adjusted balance of the Allowance account under the balance sheet approach?

A) $2,000
B) $1,400
C) $2,500
D) $1,900

Correct Answer:

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