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Allowance for Doubtful Accounts has a credit balance of $400 at the end of the year (before adjustment), and uncollectible accounts expense is estimated at

Allowance for Doubtful Accounts has a credit balance of $400 at the end of the year (before adjustment), and uncollectible accounts expense is estimated at 2% of sales. If sales are $540,000, the amount of the adjusting entry to journalize the provision for doubtful accounts is

a. $11,200

b. $10,800

c. $10,792

d. $10,400

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