A company's preliminary trial balance reflects an accounts receivable balance of $80,000 and a debit balance in

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Question:

A company's preliminary trial balance reflects an accounts receivable balance of $80,000 and a debit balance in the Allowance for Doubtful Accounts of $300. Per review of the Aged Receivables listing, 50% of the accounts receivable are current and 50% are over-due. Management estimates that 3% of the current accounts and 5% of the over-due accounts will be uncollectible. The adjusting journal entry to update the Allowance for Doubtful accounts is for

Multiple Choice

a. $3,200

b. $3,500

c. $3,400

d. $4,000

e. $2,900