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.Compute the adjusted balance in the allowance for doubtful accounts?
A) $15,000
B) $14,500
C) $14,000
D) $15,500

Question

Quizplus · Accepted Answer

The adjusted balance in the Allowance for Doubtful Accounts should directly reflect the estimated doubtful accounts, which is $15,000, regardless of its unadjusted balance.

Allowance for Doubtful Accounts Has an Unadjusted Balance of $500