The General Ledger Account for Accounts Receivable Shows a Debit

Multiple Choice

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 accounts receivable aging method,the entry to record Uncollectible Accounts Expense would be:

A) Uncollectible Accounts Expense 21,500 Allowance for Uncollectible Accounts 21,500
B) Uncollectible Accounts Expense 17,000 Allowance for Uncollectible Accounts 17,000
C) Allowance for Uncollectible Accounts 20,000 Uncollectible Accounts Expense 20,000
D) Allowance for Uncollectible Accounts 23,000 Uncollectible Accounts Expense 23,000