What should the balance in the allowance account

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Question - On January 1, 20x8, Myer Company's allowance for doubtful accounts had a credit balance of $6259. Sales revenue for 20x8 was $1056303 of which 80% was on credit. Historical data indicates that 3 percent of credit sales prove uncollectible. The company wrote off $8742 of accounts receivable during the year. What should the balance in the allowance account be after the adjusting entry for doubtful accounts is made?

a. $22868 cr.

b. $10350 dr.

c. $10350 cr.

d. $16609 cr.

Reference no: EM132874436

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