A company has $316,000 in credit sales. The company uses the allowance method to account for uncollectible accounts. The Allowance for Doubtful Accounts now has a $1,896 debit balance. If the company estimates that $8,160 of accounts will be uncollectible based on an aging of Accounts Receivable, what will be the amount of the journal entry to record estimated uncollectible accounts?
A) $8,160
B) $6,264
C) $10,056
D) $1,896
C) $10,056
Explanation: estimated uncollectible amount + debit balance = adjustment amount; ex: $1,896 + $8,160 = $10,056
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