A Company Who Uses the Allowance Method, Writes-Off a Receivable

Multiple Choice

A company who uses the allowance method, writes-off a receivable of $2,000. Prior to the journal entry, the balance in the Allowance for Uncollectible Accounts was $18,432. After the entry to write-off the receivable is made, the balance in the Allowance for Uncollectible Accounts will be:

A) $2,000.
B) $12,432.
C) $16,432.
D) $20,432.