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In 2025, Sunland Auto Service Company had net credit sales of $2680000. On January 1, 2025, Allowance for Doubtful Accounts had a credit balance of
In 2025, Sunland Auto Service Company had net credit sales of $2680000. On January 1, 2025, Allowance for Doubtful Accounts had a credit balance of $68500, During 2025, $106000 of uncollectible accounts recelvable were written off. Past experience indicates that the allowance should be 10% of the balance in receivables (percentage of receivables basis). if the accounts recelvable balance at December 31 was $650000, what is the required adjustment to the Allowance for Doubtful Accounts at December 31,2025 ? $65000$30000$106000$102500
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