On December 31, Prior to Adjustments, the Balance of Accounts

Multiple Choice

On December 31, prior to adjustments, the balance of Accounts Receivable is $32,000 and Allowance for Doubtful Accounts has a credit balance of $290. The firm estimates its losses from uncollectible accounts to be 5.5% of accounts receivable at the end of the year. The adjusting entry needed to record the estimated losses from uncollectible accounts is

A) $290.
B) $1,470.
C) $1,310.
D) $1,760.