What is the appropriate balance for oceanside allowance

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Question - Oceanside Company uses the balance sheet approach in estimating uncollectible accounts expense. Its Allowance for Doubtful Accounts has a $1,200 credit balance prior to adjusting entries. It has just completed an aging analysis of accounts receivable at December 31, 2015. This analysis disclosed the following information:

 

Age Group Total

Percentage Considered Uncollectible

Not yet due

$52,000

1%

1-30 days past due

$30,000

2%

31-60 past due

$13,000

8%

What is the appropriate balance for Oceanside's Allowance for Doubtful Accounts at December 31, 2015?

a. $960.

b. $3,360.

c. $95,000.

d. $2,160.

Reference no: EM132609741

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