NeuWave Inc. has the following unadjusted year end trial balance information available for 2022:

Credit sales		$ 4,000,000
Ending accounts receivable balance	$ 1,080,000
Ending allowance for credit losses balance	$ 15,500
Estimated uncollectibles		1.5%

If NeuWave uses the sales revenue approach for estimating the allowance for credit losses, what should the allowance for credit losses account and credit loss expenses be?

• A.

$44,500; $60,000

• B.

$16,200; $700

• C. $44,500; $700
• D.

$75,500; $60,000

• E.

$31,700; $16,200