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In 2020, Yale Company had credit sales of $1,050,000 and granted sales discounts of $25,000. On January 1, 2020, Allowance for Doubtful Accounts had a
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In 2020, Yale Company had credit sales of $1,050,000 and granted sales discounts of $25,000. On January 1, 2020, Allowance for Doubtful Accounts had a credit balance of $26,400. During 2020, $43,000 of uncollectible accounts receivable were written off. Past experience indicates that 3% of net credit sales become uncollectible. What should be the adjusted balance of Allowance for Doubtful Accounts at December 31, 2020?
a. $14,150 b. $14,900 c. $31,500 d. $47,350
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