Kolker Company uses the percent-of-sales method to estimate uncollectibles. Net credit sales for the current year amount to $ 150 comma 000, and management estimates 3% will be uncollectible. The amount of expense to report on the income statement was $ 4 comma 500. The Allowance for Uncollectible Accounts prior to adjustment has a credit balance of $ 1 comma 000. The balance of Allowance for Uncollectible Accounts, after adjustment, will be A. $ 4 comma 500. B. $ 5 comma 200. C. $ 5 comma 500. D. $ 500.
