A Firm Reported Net Credit Sales of $960,000 for the Year

Multiple Choice

A firm reported net credit sales of $960,000 for the year and an Accounts Receivable balance of
$120,000 at year-end. Prior to adjustments, Allowance for Doubtful Accounts has a debit balance of $820. The firm estimates its losses from uncollectible accounts to be one-half of 1 percent of net credit sales.
- The entry to record the estimated losses from uncollectible accounts will include a credit to Allowance for Doubtful Accounts for

A) $4,800.
B) $5,620.
C) $5,080.
D) $3,980.