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Problem 1: Wilkinson Company had net credit sales of $2,250,000. At the beginning of the year, its Allowance for Doubtful Accounts had a credit balance of $54,000. During year, $90,000 of uncollectible accounts receivable were written off. Past experience indicates that the allowance should be 10% of the balance in receivables (percentage of receivables basis). If the accounts receivable balance at the end of the year was $600,000, what is the required adjustment to the Allowance for Doubtful Accounts at year end?
A) $ 60,000
B) $ 24,000
C) $ 96,000
D) $ 90,000
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