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Company ABC Inc. has a balance of accounts receivable of $111,000. The balance of Allowance...

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Accounting

Company ABC Inc. has a balance of accounts receivable of $111,000. The balance of Allowance for Doubtful Accounts is $800 in a normal credit position. Two thirds of the accounts receivable are current and one third are overdue. ABC Inc. estimates that 1% of the current accounts receivable and 6% of the overdue accounts receivable will be uncollectible. The adjusting entry for uncollectible accounts receivables should be in the amount of:

None of the other alternatives are correct

$2,220

$3,760

$2,960

$2,160

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