Yellow Corp.’s account balances at December 31, 2017 included Accounts Receivable, $720,000 debit; Allowance for Doubtful Accounts, $800 debit. Sales during 2017 were $1,840,000. It is estimated that 2% of sales will be uncollectible. The required adjusting entry would include a credit to the allowance account for
A. $28,800.
B. $36,800.
C. $14,400.
D. $30,600.
Answer:B
Yellow Corp.’s account balances at December 31, 2017 included Accounts Receivable, $720,000 debit; Allowance for Doubtful Accounts, $800 debit. Sales during 2017 were $1,840,000. It is estimated that 2% of sales will be uncollectible. The required adjusting entry would include a credit to the allowance account for
A. $28,800. B. $36,800. C. $14,400. D. $30,600.