Acme Discount Wholesale Company has a $145,000 balance in Accounts Receivable and a $420 debit...

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Accounting

Acme Discount Wholesale Company has a $145,000 balance in Accounts Receivable and a $420 debit balance in Allowance for Doubtful Accounts at year-end just prior to recording adjusting entries. Credit sales for the period totaled $960,000. How much is the amount of the bad debt adjusting entry if Acme estimates that 1.5% of its receivables will be uncollectible?
A) $1,755
B) $2,175
C) $2,595
D) $14,400
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