In 2022, Wilkinson Company Had Net Credit Sales of $2,250,000

Multiple Choice

In 2022, Wilkinson Company had net credit sales of $2,250,000.On January 1, 2022, Allowance for Doubtful Accounts had a credit balance of $54,000.During 2022, $90,000 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 $600,000, what is the required adjustment to the Allowance for Doubtful Accounts at December 31, 2022?

A) $ 60,000
B) $ 25,000
C) $ 96,000
D) $ 90,000