An aging-of-accounts-receivable indicates that the amount of uncollectible accounts is $3610. The Allowance for Uncollectible Accounts prior to adjustment has a debit balance of $300. The Accounts Receivable balance is $44,820. The amount of the adjusting entry for uncollectible accounts should be for:

Question

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The adjusting entry should bring the Allowance for Uncollectible Accounts to the estimated uncollectible amount of $3610. Since there is already a $300 debit balance, you need to credit $3910 to offset the debit and reach the desired credit balance.

An Aging-Of-Accounts-Receivable Indicates That the Amount of Uncollectible Accounts Is