A Company Has Total Accounts Receivable of $500,000 for the Year

Multiple Choice

A company has total accounts receivable of $500,000 for the year and it estimates that uncollectible accounts will be 3% of accounts receivable. If Allowance for Doubtful Accounts has a credit balance of $2,000 prior to adjustment, its balance after adjustment will be a credit of

A) $17,000.
B) $13,000.
C) $14,940.
D) $15,000.