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Hunt Company estimates uncollectible accounts using the percentage-of-receivables method and expects that 5 per cent of outstanding receivables will be uncollectible for 2010. The balance

Hunt Company estimates uncollectible accounts using the percentage-of-receivables method and expects that 5 per cent of outstanding receivables will be uncollectible for 2010. The balance in Accounts Receivable is USD 200,000, and the allowance account has a USD 3,000 credit balance before adjustment at year-end. The uncollectible accounts expense for 2010 will be:

a. USD 7,000.

b. USD 10,000.

c. USD 13,000.

d. USD 9,850.

e. None of the above.

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