Multiple Choice
The Allowance for doubtful debts currently has a credit balance of $200. The company's management estimates that 2.5% of net credit sales will be uncollectable. Net credit sales are $115 000. What will be the balance of the Allowance for doubtful debts reported on the balance sheet?
A) $3 275
B) $2 875
C) $3 075
D) $2 675
Correct Answer:
Verified
Correct Answer:
Verified
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