Condition gt requires numbers instead of \"null\" and \"0\" In 2014 Wilkinson Co

Question

Condition gt requires numbers instead of "null" and "0" In 2014 Wilkinson Company had net credit sales of $1,500,000. On January 1, 2014, Allowance for Doubtful Accounts had a credit balance of $36,000. During 2014, $60,000 of uncollectible accounts receivable were written off. Past experience indicates that the allowance should be 10% of the balance in receivables (percentage of receivables basis). If the accounts receivable balance at December 31 was $400,000, what is the required adjustment to the Allowance for Doubtful Accounts at December 31, 2014?

A) $150,000

B) $40,000

C) $60,000

D) $64,000

Explanation / Answer

Accounts receivable balance as on December 31 400000 Allowance required 10% of accounts receivable 40000 Hence option B is correct

Related Questions

Navigate

• Browse (All)
• Browse C
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.