On December 31, 2019, Prior to Adjustments, Accounts Receivable Has

Multiple Choice

On December 31, 2019, prior to adjustments, Accounts Receivable has a debit balance of $256,000 and the Allowance for Doubtful Accounts has a credit balance of $1,600. The firm estimates its losses from uncollectible accounts to be 5% of accounts receivable at the end of the year. The balance in the Allowance for Doubtful Accounts after the adjusting entry for the estimated losses from uncollectible accounts is:

A) $12,800
B) $12,100
C) $11,200
D) $14,400