The data presented below is for Mellon Corporation for the year ended December 31, 2015: Sales (100% on credit) $1,500,000 Sales returns 60,000 Accounts Receivable (December 31, 2015) 250,000 Allowance for Doubtful Accounts (Before adjustment at December 31, 2015) 3,000 Estimated amount of uncollectible accounts based on an aging analysis 31,000 Refer to information for Mellon Corporation. If
Mellon uses 2% of net credit sales to estimate its bad debts, what will be the balance in the Allowance for Doubtful Accounts account after the adjustment for bad debts?
a. $33,000
b. $31,800
c. $27,000
d. $25,800
b
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Answer the following statement true (T) or false (F)
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Indicate whether the statement is true or false
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