After aging the receivables,Tim's Toys estimates that $1,900 will not be collected and the allowance account has a debit balance of $525.The adjusting entry would be for:
A)$1,900.
B)$525.
C)$2,425.
D)$1,375.

Question

Quizplus · Accepted Answer

The adjusting entry would be to increase the allowance account by $1,900 and decrease it by the existing debit balance of $525. Therefore, the adjusting entry would be for a total of $2,425 ( $1,900 + $525).

After Aging the Receivables,Tim's Toys Estimates That $1,900 Will Not