Reference no: EM132483878

Question - Y Company obtained the following balances from its computerized accounting information system at the end of the year before adjustments:

Accounts receivable $27,000

Allowance for uncollectible accounts (3,000)

Net sales 100,000

Bad debts expense 0

The company estimates that 20% of accounts receivable will be uncollectible. After the correct adjusting entry has been made, the allowance for uncollectible accounts will be:

A) $(2,400).

B) $(4,800).

C) $(5,400).

D) $(20,000).