At January 1, 20X7, Gear Co. had a credit balance of $180,000 in its allowance for uncollectible accounts. Based on past experience, 3% of Gear's credit sales have been uncollectible. During 20X7, Gear wrote off $210,000 of uncollectible accounts. Credit sales for 20X7 were $4,500,000. In its December 31, 20X7 balance sheet, what amount should Gear report as allowance for uncollectible accounts? a. $135,000
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