Allowance for Doubtful Accounts Has a Credit Balance of $1,100

Multiple Choice

Allowance for Doubtful Accounts has a credit balance of $1,100 at the end of the year, before adjustments. Sales for the year amounted to $760,000, sales discounts amounted to $12,000 and sales returns and allowances amounted to $36,000. 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) $15,200
B) $14,240
C) $15,340
D) $13,140