in 2017 Wilkinson company had net credit sales of $1,500,000. On January 1, 2017, allowance for doubtful accounts had a credit balance of $36,000. Drain 2017, $60,000 of uncollectible accounts receivable were written off. Past experience indicate that allowance should be 10% of the balance in receivables. If the accounts receivable balance of December 31 was $400,000, what is the required adjustment to the allowance for doubtful accounts a December 31, 2017?

$150,000

$40,000

$64,000

$60,000

In 2017 Wilkinson Company had net credit sales of $1,500,000. On January 1, 2017. Allowance for Doubtful Accounts had a credit balance of $36,000. During 2017. $60,000 of uncollectible accounts receivable were written off. Past experience indicates that the allowance should be 10% of the balance in receivables (percentage of receivables basis). If the accounts receivable balance at December 31 was $400,000, what is the required adjustment to the Allowance for Doubtful Accounts at December 31, 2017? O $150.000 O $ 40.000 O $64.000 $ 60.000