For the Year Ended December 31, 20X0, Barracks and Bullets

Multiple Choice

For the year ended December 31, 20X0, Barracks and Bullets Emporium estimated its allowance for doubtful accounts using the year-end aging of accounts receivable. The following data are available $$\begin{array} { | l | r | } \hline \text { Allowance for doubtful accounts, Jan 120X0 } & \$ 37,000 \\\hline \begin{array} { l } \text { Estimated uncollectible accounts during 20X0 } \\( 1 \% \text { on credit sales of } \$ 4,000,000 ) \end{array} & \$ 40,000 \\\hline \text { Uncollectible accounts written off, Nov 30 20X0 } & \$ 52,000 \\\hline \text { Estimated uncollectible accounts per aging, Dec 3120X0 } & \$ 74,000 \\\hline\end{array}$$ After year-end adjustment, the bad debt expense for 20X0 should be

A) $89,000
B) $37,000
C) $126,000
D) $52,000