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Jennings Co. adjusts its Allowance for Doubtful Accounts at year end. The general ledger balances...

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Accounting

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Jennings Co. adjusts its Allowance for Doubtful Accounts at year end. The general ledger balances for the Accounts Receivable and the related allowance account before adjustment were $1,500,000 and $45,000, respectively. Jennings estimates its necessary balance in its Allowance for Doubtful Accounts as 4% of the Accounts Receivable balance. What amount should Jennings record as an adjustment to its Allowance for Doubtful Accounts at year end? Multiple Choice O $60,000 increase. O $15,000 increase. $60,000 decrease. O $15,000 decrease

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