During its first year of operations, a company has credit sales of $750,000 and cash sales of $250,000. By the end of the year, cash collections on credit sales total $625,000, and the company estimates uncollectible accounts to be 2% of accounts receivable.

The amount to record for the year-end adjusting entry for uncollectible accounts would be:

During its first year of operations, a company has credit sales of $750,000 and cash sales of $250,000. By the end of the year, cash collections on credit sales total $625,000, and the company estimates uncollectible accounts to be 2% of accounts receivable. The amount to record for the year-end adjusting entry for uncollectible accounts would be: Select one: O a. $2,500 O b. $5,000 O c. $15,000 O d. $12,500 O e. $3,750