The Following Accounts Were Abstracted from Starr Co

Multiple Choice

The following accounts were abstracted from Starr Co.'s unadjusted trial balance at December 31, 2014: Starr estimates that 4% of the gross accounts receivable will become uncollectible. After adjustment at December 31, 2014, the allowance for uncollectible accounts should have a credit balance of

A) $120,000.
B) $112,000.
C) $38,000.
D) $30,000.