The following information pertains to Lightning Inc., at the end of the year: Credit Sales$60,000 Accounts Payable 10,000 Accounts Receivable 7,000 Allowance for Uncollectible Accounts 400 creditCash Sales 20,000 Lightning uses the percentage-of-credit-sales method and estimates 1% of sales are uncollectible. What is the ending balance of the allowance account after the year-end adjustment?
A. $1,200.
B. $1,000.
C. $600.
D. $200.
Answer: B
Business
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