Allowance for Doubtful Accounts Has a Debit Balance of $500

Multiple Choice

Allowance for Doubtful Accounts has a debit balance of $500 at the end of the year,before adjustments.Sales for the year amounted to $870,000,sales discounts amounted to $30,000 and sales returns and allowances amounted to $40,000.If the uncollectible accounts expense is estimated at 2% of net sales,the amount of the adjusting entry to record the estimated losses from uncollectible accounts will be

A) $17,400
B) $16,500
C) $16,000
D) $15,500