Question - Wilmar Corp. has total sales during the year in the amount of $24.8 million, of which 55% are cash sales. There is also a debit balance of $226,200 in the allowance for doubtful accounts. If the company estimates that 3% of its credit sales will be uncollectible, what will be the balance in the allowance for doubtful accounts after the year-end adjustment to record bad debt expense?
$517,800.
$183,000.
$108,600.
$561,200.