The following accounts were taken from Starr Companys ledger of accounts before adjustments at December 31, 2014:

DEBIT CREDIT

Accounts Receivable $700,000

Allowance for uncollectible accounts 8,000

Net credit sales $3,000,000

Moon estimates that 4% of the gross accounts receivable will become uncollectible. After adjustment at December 31, 2014, the allowance for uncollectible accounts should be :

Required: Encircle the letter representing the correct amount.

Unless all supporting schedules and computations for every answer are presented in good traceable order, there will be NO credit

1. $120,000; (b) $112,000; (c) $28,000; (d) $36,000; (e) none of these