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Empire Records Company has credit sales of $375,000 and accounts receivable of $50,000 on December 31, 2020. Management estimates that 5% of its credit sales
Empire Records Company has credit sales of $375,000 and accounts receivable of $50,000 on December 31, 2020. Management estimates that 5% of its credit sales will be uncollectible. The company shows a beginning balance of $200 in its Allowance for Doubtful Accounts account. What is thebalance in the Allowance for Doubtful Accounts account after adjustment?
a) $31,050
b) $18,550
c) $18,950
d) $18,750
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