Multiple Choice
Harney Inc.uses the percentage of credit sales method of estimating doubtful accounts.The Allowance for Doubtful Accounts has an unadjusted credit balance of $2,700 and the company had $140,000 of net credit sales during the period.Harney has experienced bad debt losses of 4% of credit sales in prior periods.After making the adjusting entry for estimated bad debts,what is the ending balance in the Allowance for Doubtful Accounts account?
A) $8,300
B) $5,400
C) $2,900
D) $5,600
Correct Answer:
Verified
Correct Answer:
Verified
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