The Allowance for Uncollectible Accounts has a credit balance of $4,000 prior to the end-of-month adjustment. Sales on credit for the month were $500,000. Past experience indicates that 4 percent of the months credit sales will become uncollectible. Alternatively, an aging of Accounts Receivable accounts shows an estimated total of all uncollectible accounts receivable to be $26,000. Using the aging method, the Allowance for Uncollectible Accounts should be credited for:

A) $20,000

B) $24,000

C) $16,000

D) $22,000

Using the percentage of credit sales method, the Allowance for Uncollectible Accounts should be credited for:

A) $24,000

B) $22,000

C) $20,000

D) $16,000