Allowance for Doubtful Accounts Has a Debit Balance of $700

Multiple Choice

Allowance for Doubtful Accounts has a debit balance of $700 at the end of the year, before adjustments. Sales for the year amounted to $920,000, sales discounts amounted to $31,200 and sales returns and allowances amounted to $42,300.
- If the uncollectible accounts expense is estimated at 2% of net sales, the amount of the adjusting entry to record the estimated losses from uncollectible accounts will be

A) $16,930
B) $16,230
C) $18,400
D) $17,630