Use the following information for questions
A trial balance before adjustments included the following: $\begin{array}{lrr}&\text { Debit } & \text { Credit }\\hline
\text { Sales } & & \$ 425,000 \
\text { Sales returns and allowance } & \$ 14,000 & \
\text { Accounts receivable } & 43,000 & \
\text { Allowance for doubtful accounts } & & 760
\end{array}$
-If the estimate of uncollectibles is made by taking 10% of gross account receivables, the amount of the adjustment is

Question

Use the following information for questions 
A trial balance before adjustments included the following: $\begin{array}{lrr}&\text { Debit } & \text { Credit }\\hline
\text { Sales } & & \$ 425,000 \
\text { Sales returns and allowance } & \$ 14,000 & \
\text { Accounts receivable } & 43,000 & \
\text { Allowance for doubtful accounts } & & 760
\end{array}$
-If the estimate of uncollectibles is made by taking 10% of gross account receivables, the amount of the adjustment is

Quizplus · Accepted Answer

The adjustment is calculated as follows:Allowance for doubtful accounts = 10% x Accounts receivable= 10% x $43,000= $4,300The adjustment amount is $4,300, which is choice A.

Use the Following Information for Questions a Trial Balance

Use the Following Information for Questions
a Trial Balance