Balance In Allowance For The Uncollectible Accounts 548544

Bigg and Talle Corporation uses the percentage-of-sales method to estimate uncollectibles. Net credit sales for the current year amount to $5,000,000 and management estimates 2% will be uncollectible. Allowance for Doubtful Accounts prior to adjustment has a credit balance of $16,000. After all necessary adjusting entries are made, the balance in Allowance for Uncollectible Accounts will be:

A.$116,000.

B.$100,000.

C.$ 84,000.

D.$ 16,000.