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Justin Trudeau Inc. had accounts receivable $5,000,000, credit sales of $8,000,000 and sales returns and allowances of $1,500,000 during 2020. On January 1, 2020, Allowance
Justin Trudeau Inc. had accounts receivable $5,000,000, credit sales of $8,000,000 and sales returns and allowances of $1,500,000 during 2020. On January 1, 2020, Allowance for Doubtful Accounts had a debit balance of $1,500. During 2020, $85,000 of uncollectible accounts receivable were written off. Past experience indicates that 9% of account receivables become uncollectible. What should be the adjusted balance of Allowance for Doubtful Accounts at December 31,2020?
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