The current credit balance in allowance for doubtful accounts before adjustment is $658. An aging schedule reveals $3,500 of uncollectible accounts. The ending balance in allowance for doubtful accounts should be:
A)$3,500.
B)$2,842.
C)$4,158.
D)$658.

Question

Quizplus · Accepted Answer

The ending balance in the allowance for doubtful accounts should match the estimate from the aging schedule, which is $3,500. This is because the allowance account is adjusted to reflect the current estimate of uncollectible accounts.

The Current Credit Balance in Allowance for Doubtful Accounts Before