Clayborn Company Expects That $12,600 of Its $420,000 Accounts Receivable

Multiple Choice

Clayborn Company expects that $12,600 of its $420,000 Accounts Receivable balance is uncollectible. The Allowance for Doubtful Accounts before adjustment has a credit balance of $1,400. The amount of the adjusting entry needed by Clayborn is:

A) $14,000
B) $12,600
C) $11,200
D) $406,000
E) $408,800