In 2018, Chandler Company Had Net Credit Sales of $1,125,000

Multiple Choice

In 2018, Chandler Company had net credit sales of $1,125,000. On January 1, 2018, Allowance for Doubtful Accounts had a credit balance of $27,000. During 2018, $42,000 of uncollectible accounts receivable were written off. Past experience indicates that the allowance should be 10% of the balance in receivables (percentage of receivables basis) . If the accounts receivable balance at December 31 was $380,000, what is the required adjustment to the Allowance for Doubtful Accounts at December 31, 2018?

A) $23,000
B) $38,000
C) $53,000
D) $97,500