On January 1, 2013, Murphy Printing Company's Allowance for Doubtful

Multiple Choice

On January 1, 2013, Murphy Printing Company's allowance for doubtful accounts had a credit balance of $6,000.Sales revenue for 2013 was $1,000,000, of which 80% was on credit.Historical data indicates that 3% of gross credit sales prove uncollectible.What should the balance in the allowance account be after the adjusting entry for doubtful accounts is made?

A) $18,000 credit
B) $24,000 credit
C) $30,000 credit
D) $18,000 debit