Using the aging- of- accounts- receivable method to estimate uncollectibles, Greeley Corporation estimates that $9,500 of its accounts receivable will be uncollectible. Prior to adjustment, the Allowance for Uncollectible Accounts has a debit balance of $3,000. After all necessary adjusting entries are made, the balance in Allowance for Uncollectible Accounts will be:
A) $ 9,500.
B) $ 6,500.
C) $12,500.
D) $ 3,000.
Correct Answer:
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