An aging-of-accounts-receivable indicates that the amount of uncollectible accounts is $3,410. The Allowance for Uncollectible Accounts prior to adjustment has a credit balance of $500. 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 increase the Allowance for Uncollectible Accounts by the amount of uncollectible accounts indicated by the aging-of-accounts-receivable, which is $3,410. Since the Allowance for Uncollectible Accounts already has a credit balance of $500, the additional credit needed is $2,910 ($3,410 - $500). Therefore, the adjusting entry for uncollectible accounts should be for $2,910.

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