Reference no: EM132469259

The Carlyle Company began operations on January 1, 203(0. During January the company had net credit sales of $800,000. The company estimates that 4% of the net credit sales will become uncollectible and sets up an allowance account based on this assumption. Cash of $600,000 was collected from customers in payment of their accounts. Speci?c accounts totaling $14,000 were written off during the month.

Question 1: What would be the balances in the Allowance for Doubtful Accounts and the Uncollectible Accounts Expense at the end of January after the necessary adjusting entry?

Option A. Allowance for Doubtful Accounts $32,000 and $18,000 Uncollectible Accounts Expense

Option B. Allowance for Doubtful Accounts $32,000 and $14,000 Uncollectible Accounts Expense

Option C. Allowance for Doubtful Accounts $18,000 and Uncollectible Accounts Expense $32,000

Option D. Allowance for Doubtful Accounts $14,000 and Uncollectible Accounts Expense $32,000