The general ledger account for Accounts Receivable shows a debit balance of $25,000 . Allowance for Uncollectible Accounts has a credit balance of $1,500 . Net sales for the year were $250,000 . In the past, 3 percent of sales have proved uncollectible, and an aging of accounts receivable resulted in an estimate of $10,000 of uncollectible accounts receivable. Using the percentage of net sales
method, the Allowance for Uncollectible Accounts balance (after adjustment) would be
a. $7,500.
b. $10,000.
c. $9,000.
d. $6,000.
C
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