The General Ledger Account for Accounts Receivable Shows a Debit

Essay

The general ledger account for Accounts Receivable shows a debit balance of $50,000.Allowance for Uncollectible Accounts has a credit balance of $3,000.Net sales for the year were $500,000.In the past,3 percent of sales have proved uncollectible,and an aging of accounts receivable resulted in an estimate of $20,000 of uncollectible accounts receivable.
Using the percentage of net sales method,the Allowance for Uncollectible Accounts balance (after adjustment)would be
a.$15,000.
b.$20,000.
c.$18,000.
d.$12,000.