The following accounts were abstracted from Roxy Co.’s unadjusted trial balance at December 31, 2006:
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|
Debit |
Credit |
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|
Accounts receivable |
$1,000,000 |
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|
Allowance for uncollectible accounts |
8,000 |
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|
Net credit sales |
$3,000,000 |
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Roxy estimates that 3% of the gross accounts receivable will become uncollectible. After adjustment at December 31, 2006, the allowance for uncollectible accounts should have a credit balance of
- $90,000
- $82,000
- $38,000
- $30,000