Gross Accounts Receivable is $15,000. Allowance for Doubtful Accounts has a credit balance of $300. Net credit sales for the year are $140,000. In the past, 1% of credit sales had proved uncollectible

What would be the adjusted balance of the Allowance account under the income statement approach?
A) $2,400
B) $1,700
C) $1,400
D) $1,100

Answer: B

Business

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