Multiple Choice
Net credit sales for the month are $900,000.The accounts receivable balance is $192,000.The allowance is calculated as 5% of the receivables balance using the percentage-of-receivables basis.If the Allowance for Doubtful Accounts has a credit balance of $6,000 before adjustment, what is the balance after adjustment?
A) $ 9,600
B) $ 3,600
C) $15,600
D) $ 9,900
Correct Answer:
Verified
Correct Answer:
Verified
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