Grayhawk Company Reported Net Credit Sales of $588,000 for the Year

Multiple Choice

Grayhawk Company reported net credit sales of $588,000 for the year ending December 31,2019.On January 1,2019,the Allowance for Doubtful Accounts had a credit balance of $14,400.During 2019,$24,000 of uncollectible accounts receivable were written off.Grayhawk has experienced bad debt losses of 3% of credit sales in prior periods.Using the percentage of credit sales method,what is the adjusted balance in the Allowance for Doubtful Accounts at December 31,2019?

A) $8,040
B) $8,400
C) $17,640
D) $27,600