Ariel IncUses the Allowance Method of Accounting for Uncollectible Accounts Receivable

Multiple Choice

Ariel Inc.uses the allowance method of accounting for uncollectible accounts receivable and estimates that 2% of the credit sales of $1,650,000 for the year ended will be uncollectible.Allowance for Doubtful Accounts has a negative unadjusted balance of $(1,600) at the end of the year.Determine the amount of the adjustment to record the provision for doubtful accounts.

A) $33,000
B) $31,400
C) $34,600
D) $30,000