Use the Following Information for Questions The Balance in Their Allowance for Doubtful Accounts Before Year-End

Multiple Choice

Use the following information for questions: $$\begin{array} { l c c } \text { Days outstanding } & \text { Balance } & \text { Estimated percentage uncollectible } \\0 - 30 \text { days } & \$ 350,000 & 1 \% \\31 - 60 \text { days } & 275,000 & 2 \% \\61 - 90 \text { days } & 67,500 & 5 \% \\ \text { over } 90 \text { days } & 37,500 & 25 \%\end{array}$$ The balance in their allowance for doubtful accounts before year-end adjustments is a $2,000 credit.
-The balance in the allowance for doubtful accounts after year-end adjustments will be:

A) $2,000.
B) $23,750.
C) $21,750.
D) $19,750.