In 2022 the Bear Co. had net credit sales of $1,100,000. On January 1, 2022, the
Allowance for Doubtful Accounts had a credit balance of $43,500. During 2022,
$35,000 of uncollectible accounts receivable were written off. Past experience
inidicates that the allowance should be 12% of the balance in receivables
(percentage-of-receivables basis). If the accounts receivable balance at December 31
was $400,000, what is the required adjustment to the Allowance for Doubtful
Accounts at December 31, 2022?
$8,500.
$43,500.
$56,500.
$39,500.