A company has total accounts receivable of $500,000 for the year and it estimates that uncollectible accounts will be 3% of accounts receivable. If Allowance for Doubtful Accounts has a credit balance of $2,000 prior to adjustment, its balance after adjustment will be a credit of

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The estimated uncollectible accounts are 3% of $500,000, which is $15,000. Since the Allowance for Doubtful Accounts already has a credit balance of $2,000, the adjustment needed is $15,000 - $2,000 = $13,000. Therefore, the balance after adjustment will be $2,000 + $13,000 = $15,000.

A Company Has Total Accounts Receivable of $500,000 for the Year