Calculate the allowance for doubtful accounts

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Question - The following accounts were abstracted from Todd Company's unadjusted trial balance at December 31:

Accounts receivables $800,000

Allowance for doubtful accounts 10,0000

Net credit sales $3,000,000

Todd Company estimates that 3% of net credit sales will become uncollectible. After adjustment at December 31, the allowance for doubtful accounts should have a credit balance of:

a. $24,000

b. $34,000

c. $90,000

d. $80,000

e. $100,000

Reference no: EM132545558

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