June Cleary estimates uncollectibles to be $2,300. There is a debit balance in the allowance account of $520. The adjusting entry amount under the aging of receivable balance sheet approach is:
A) $2,300.
B) $520.
C) $2,820.
D) $1,780.

Question

Quizplus · Accepted Answer

The adjusting entry amount is the estimated uncollectibles ($2,300) plus the existing debit balance in the allowance account ($520), totaling $2,820. This ensures the allowance account reflects the correct estimated uncollectibles after adjustment.

June Cleary Estimates Uncollectibles to Be $2,300