A Firm Reported Sales of $600,000 During the Year and Has

Multiple Choice

A firm reported sales of $600,000 during the year and has a balance of $40,000 in its Accounts Receivable account at year-end.Prior to adjustment,Allowance for Doubtful Accounts has a credit balance of $600.The firm estimated its losses from uncollectible accounts to be one-half of 1 percent of sales.The entry to record the estimated losses from uncollectible accounts will include a credit to Allowance for Doubtful Accounts for

A) $6,000.
B) $3,600.
C) $3,000.
D) $2,400.