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

Question

Quizplus · Accepted Answer

The correct journal entry amount is $2,842, which is the difference between the required balance ($3,500 from the aging schedule) and the existing credit balance in the allowance account ($658). This adjustment ensures the allowance reflects the estimated uncollectible accounts accurately.

The Current Credit Balance in Allowance for Doubtful Accounts Before