The following accounts were abstracted from Starr Co.'s unadjusted trial balance at December 31, 2017:
Debit Credit
Accounts receivable $750,000
Allowance for uncollectible accounts 8,000
Net credit sales $3,000,000
Starr estimates that 6% of the gross accounts receivable will become uncollectible. After adjustment at December 31, 2017, the allowance for uncollectible accounts should have a credit balance of:
a.$45,000.
b.$180,000.
c.$57,000.
d.$168,000.
Answers: 3
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