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

Multiple Choice

On December 31, prior to adjustments, the balance of Accounts Receivable is $28,000 and Allowance for Doubtful Accounts has a debit balance of $200. The firm estimates its losses from uncollectible accounts to be 5.5% of accounts receivable at the end of the year. The balance is Allowance for Doubtful Accounts after adjustment is

A) $1,740.
B) $1,340.
C) $200.
D) $1,540.