12. AT&U company has the following data for the year ended december 31, year 1:

referred to AT&U Company. if the company estimates it's bad debt To be 2% of net credit sales, what will the balance in the allowance for doubtful accounts after the adjustment for bad debt expense?

a)$44,500

b)$45,000

c)$49,000

d)$69,000

12. AT&U Company has the following data for the year ended December 31, $2,500,000 50,000 640,000 Sales (credit) Sales returns and allowances Accounts receivable (December 31, Year 1) Allowance for doubtful accounts (before adjustment at December 31, Year 1) Estimated amount of uncollected accounts based on aging analysis (December 31, Year 1) 20,000 45,000