The amount of uncollectible accounts at the end of the year is estimated,using the aging of receivables method,to be $25,000.The balance in the Allowance for Doubtful Accounts account is an $8,000 credit before adjustment.What should the balance in the Allowance for Doubtful Accounts account be after adjustment?
A)$8,000.
B)$17,000.
C)$25,000.
D)$33,000. 25,000 - 8,000 = 17,000

Question

Quizplus · Accepted Answer

After adjustment,the balance in the allowance account should be $25,000.Since the balance before adjustment is $8,000,bad debt expense of $17,000 must be recorded to bring the allowance account to the desired ending balance of $25,000.

The Amount of Uncollectible Accounts at the End of the Year