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The following accounts were taken from Robot Company's unadjusted trial balance on December 31, 2014: Accounts Receivable Debit Credit $1,000,000 Allowance for Doubtful Accounts 8,000 Net Credit Sales $3,000,000 Robot estimates that 3% of gross accounts receivable will become uncollectible. After adjustment on December 31, 2014, the allowance for doubtful accounts should have a credit balance of: a. $90,000 b. $82,000 c. $38,000 d. $30,000

The following accounts were taken from Robot Company's unadjusted trial balance on December 31, 2014: Accounts Receivable Debit Credit $1,000,000 Allowance for Doubtful Accounts 8,000 Net Credit Sales $3,000,000 Robot estimates that 3% of gross accounts receivable will become uncollectible. After adjustment on December 31, 2014, the allowance for doubtful accounts should have a credit balance of: a. $90,000 b. $82,000 c. $38,000 d. $30,000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The following accounts were taken from Robot Company's unadjusted trial balance on December 31, 2014: Accounts Receivable Debit Credit $1,000,000 Allowance for Doubtful Accounts 8,000 Net Credit Sales $3,000,000 Robot estimates that 3% of gross accounts receivable will become uncollectible. After adjustment on December 31, 2014, the allowance for doubtful accounts should have a credit balance of: a. $90,000 b. $82,000 c. $38,000 d. $30,000
Transcribed Image Text:The following accounts were taken from Robot Company's unadjusted trial balance on December 31, 2014: Accounts Receivable Debit Credit $1,000,000 Allowance for Doubtful Accounts 8,000 Net Credit Sales $3,000,000 Robot estimates that 3% of gross accounts receivable will become uncollectible. After adjustment on December 31, 2014, the allowance for doubtful accounts should have a credit balance of: a. $90,000 b. $82,000 c. $38,000 d. $30,000
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