On December 31, 2019 before adjusting entries, Accounts Receivable for Atlanta Company had a debit balance of $600,000, and the Allowance for Doubtful Accounts had a credit balance of $18,000. Credit sales for the year were $4,800,000. If credit losses are estimated at 1% of credit sales:

Select one:

A. The balance of the Allowance for Doubtful Accounts will be $30,000 after adjustment

B. The balance of the Allowance for Doubtful Accounts will be $66,000 after adjustment

C. The balance of the Allowance for Doubtful Accounts will be $48,000 after adjustment

D. Bad Debts Expense for the year will be $66,000

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