In 2012, Chandler Company had net credit sales of $1,125,000. On January 1, 2012

Question

In 2012, Chandler Company had net credit sales of $1,125,000. On January 1, 2012, Allowance for Doubtful Accounts had a credit balance of $27,000. During 2012, $42,000 of uncollectible accounts receivable were written off. Past experience indicates that the allowance should be 10% of the balance in receivables (percentage of receivables basis). If the accounts receivable balance at December 31 was $330,000, what is the required adjustment to the Allowance for Doubtful Accounts at December 31, 2012?

$48,000

$97,500

$18,000

$33,000

$48,000

$97,500

$18,000

$33,000

$48,000

Explanation / Answer

$97,500

Related Questions

Navigate

• Browse (All)
• Browse I
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.