Balance sheet method-computations
Rainbow Company uses the balance sheet approach to estimate uncollectible accounts. By aging the customers' accounts, it was estimated that $7,325 of the company's month-end accounts receivable would prove to be uncollectible. Determine the amount that should be debited to the Uncollectible Accounts Expense account in the month-end adjusting entry under each of the following independent assumptions:
(a.) Before making any adjustment, the Allowance for Impairment has
a $635 credit balance. $_______________
(b.) Before making any adjustment, the Allowance for Impairment
has a debit balance of $720. $_______________

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The Answer of Balance sheet method-computations
Rainbow Company uses the balance sheet approach to estimate uncollectible accounts. By aging the customers' accounts, it was estimated that $7,325 of the company's month-end accounts receivable would prove to be uncollectible. Determine the amount that should be debited to the Uncollectible Accounts Expense account in the month-end adjusting entry under each of the following independent assumptions:
(a.) Before making any adjustment, the Allowance for Impairment has
a $635 credit balance. $_______________
(b.) Before making any adjustment, the Allowance for Impairment
has a debit balance of $720. $_______________

Balance Sheet Method-Computations Rainbow Company Uses the Balance Sheet Approach to Estimate Uncollectible