Jumpin Corporation Uses the Percent-Of-Sales Method to Estimate Uncollectibles

Multiple Choice

Jumpin Corporation uses the percent-of-sales method to estimate uncollectibles. Net credit sales for the current year amount to $2,020,000, and management estimates 3% will be uncollectible. The Allowance for Uncollectible Accounts prior to adjustment has a debit balance of $1600. The amount of Uncollectible-Account Expense reported on the income statement will be:

A) $1600.
B) $59,000.
C) $60,600.
D) $62,200.