Allowance for Doubtful Accounts has an unadjusted balance of $500 at the end of the year,and an analysis of accounts in the customers ledger indicates doubtful accounts of $15,000.Which of the following records the proper provision for doubtful accounts?
A)Increase Uncollectible Accounts Expense,$14,500;increase Allowance for Doubtful Accounts,$14,500
B)Increase Uncollectible Accounts Expense,$15,000;increase Allowance for Doubtful Accounts,$15,000
C)Increase Uncollectible Accounts Expense,$14,000;increase Allowance for Doubtful Accounts,$14,000
D)Increase Uncollectible Accounts Expense,$15,500;increase Allowance for Doubtful Accounts,$15,500

Question

Quizplus · Accepted Answer

The unadjusted balance is $500, and the required balance is $15,000. Therefore, the adjustment needed is $15,000 - $500 = $14,500.

Allowance for Doubtful Accounts Has an Unadjusted Balance of $500