A company has net credit sales of $950,000 for the year and it estimates that uncollectible accounts will be 2% of sales. If Allowance for Doubtful Accounts has a credit balance of $2,000 prior to adjustment, its balance after adjustment will be a credit of .
a. $17,000.
b. $19,000.
c. $19, 040.
d. $21,000.
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