In 2022, the Golic Co

Multiple Choice

In 2022, the Golic Co.had net credit sales of $900,000.On January 1, 2022, the Allowance for Doubtful Accounts had a credit balance of $22,500.During 2022, $36,000 of uncollectible accounts receivable were written off.Past experience indicates that the allowance should be 10% of the balance in receivables (percentage-of-receivables basis) .If the accounts receivable balance at December 31 was $240,000, what is the required adjustment to the Allowance for Doubtful Accounts at December 31, 2022?

A) $24,000.
B) $37,500.
C) $46,500.
D) $36,000.