What would be the adjusted balance in the allowance

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Problem

In 2005, Lawrence Company had gross sales of $750,000 on account and granted sales discounts of $15,000. On January 1, 2005, the Allowance for Doubtful Accounts account had a credit balance of $18,000. During 2005, $30,000 of uncollectible accounts receivable were written off. Past experiences indicate that 3% of net credit sales become uncollectible. Using the percentage of net credit sales method, what would be the adjusted balance in the Allowance for Doubtful Accounts at December 31, 2005?

Reference no: EM131797306

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