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Question(s) / Instruction(s):

ABC company uses the estimate of sales method of accounting for uncollectible accounts.  ABC estimates that 3% of all credit sales will be uncollectible.  On January 1, 2005, the Allowance for Doubtful Accounts had a credit balance of $2,400.  During 2005, ABC wrote-off accounts receivable totaling $1,800 and made credit sales of $100,000.  After the adjusting entry, the December 31, 2005, balance in the Uncollectible Accounts Expense would be

a.            $1,200

b.            $3,000

c.             $3,600

d.            $7,200

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