A Company Has an Ending Accounts Receivable Balance of $900,000

Multiple Choice

A company has an ending accounts receivable balance of $900,000 and it estimates that uncollectible accounts will be 2% of the receivable balance. If Allowance for Doubtful Accounts has a credit balance of $2,000 prior to adjustment, its balance after adjustment will be a credit of

A) $20,000.
B) $18,000.
C) $17,960.
D) $16,000.