What adjusting entry would include a credit

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Problem 1: Waterway Industries's account balances at December 31, 2020 for Accounts Receivable and the Allowance for Doubtful Accounts are $900000 debit and $1580 credit. Sales during 2020 were $2706000. It is estimated that 1% of sales will be uncollectible. The adjusting entry would include a credit to the allowance account for

Option 1: $28640.
Option 2: $27060.
Option 3: $25480.
Option 4: $9000.

Reference no: EM132811981

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