Blue Company's account balances at December 31, 2010 for Accounts Receivable and the related Allowance for Doubtful Accounts are $284,000 debit and $1,000 credit, respectively.From an aging of accounts receivable, it is estimated that $10,000 of the December 31 receivables will be uncollectible.The necessary adjusting entry would include a credit to the allowance account for

Question

Quizplus · Accepted Answer

The allowance for doubtful accounts needs to be adjusted to reflect the estimated uncollectible amount of $10,000. Since there is already a $1,000 credit balance, an additional $9,000 credit is needed to reach the $10,000 total.

Blue Company's Account Balances at December 31, 2010 for Accounts