Mellon Corporation
the Data Presented Below Are for Mellon Corporation

Multiple Choice

Mellon Corporation
The data presented below are for Mellon Corporation for the year ended December 31,2017:
??
$\begin{array}{lr}\text { Sales (100\% on credit) } & \$ 1,500,000 \\\text { Sales returns } & 60,000 \\\text { Accounts receivable (December 31, 2017) } & 250,000 \\\text { Allowance for doubtful accounts (credit balance) (before adjustment at December } & \\31,2017 & 3,000 \\\text { Estimated amount of uncoll ectible accounts based on an aging analysis } & 31,000\end{array}$
-Refer to the data for Mellon Corporation. ?
If Mellon uses 2% of net credit sales to estimate its bad debts,what will be the balance in the Allowance for Doubtful Accounts account after the adjustment for bad debts?

A) $33,000
B) $31,800
C) $27,000
D) $25,800