The following information is from the 2025 records of Uptown Antique​ Shop:   Accounts​ receivable, December​ 31, 2025 $41,000 ​(debit) Allowance for Bad​ Debts, December​ 31, 2025 prior to adjustment 1,500 ​(debit) Net credit sales for 2025 175,000 Accounts written off as uncollectible during 2025 15,000 Cash sales during 2025 24,000   Bad debts expense is estimated by the percent−of−sales method. Management estimates that 3​% of net credit sales will be uncollectible. The ending balance of the Allowance for Bad Debts account after adjustment will be​ ________.         A. $4,470   B. $7,470   C. $6,750   D. $3,750

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 information is from the 2025 records of Uptown Antique​ Shop:
 
Accounts​ receivable, December​ 31, 2025
$41,000
​(debit)
Allowance for Bad​ Debts, December​ 31, 2025
prior to adjustment
1,500
​(debit)
Net credit sales for 2025
175,000
Accounts written off as uncollectible during 2025
15,000
Cash sales during 2025
24,000
 
Bad debts expense is estimated by the
percent−of−sales
method. Management estimates that
3​%
of net credit sales will be uncollectible. The ending balance of the Allowance for Bad Debts account after adjustment will be​ ________.
 
 
 
 
A.
$4,470
 
B.
$7,470
 
C.
$6,750
 
D.
$3,750
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