What should be the adjusted balance of Allowance for Doubtful Accounts at December 31, 2012?


Question Description:

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In 2012, Roso Carlson Company had net credit sales of $750,000. On January 1, 2012, Allowance for Doubtful Accounts had a credit balance of $18,000. During 2012, $30,000 of uncollectible accounts receivable were written off. Past experience indicates that 3% of net credit sales become uncollectible. What should be the adjusted balance of Allowance for Doubtful Accounts at December 31, 2012? a. $10,050. b.. $10,500. c. $22,500. d. $40,500.

Answer

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