Black Company provides an allowance for its doubtful accounts receivable. At December

31, 2016, the allowance account had a credit balance of 20,000. Each month Black

Company accrues bad debts expense in an amount equal to 1% of credit sales. Total credit

sales during 2017 amounted to 4,500,000. During 2017, uncollectible accounts receivable

totaling 15,000 were written off against the allowance account. An aging of 916,000

accounts receivable at December 31, 2017 indicates than an allowance of 62,000 should

be provided for doubtful accounts as of that date.

The year-end adjustment at December 31, 2017 to the allowance for doubtful accounts is

a. 12,000 credit b. 12,000 debit c. 17,000 credit d. 15,000 debit