An aging- of- accounts- receivable indicates that the amount of uncollectible accounts is $7,200. The Allowance for Uncollectible Accounts prior to adjustment has a credit balance of $2,000. The amount of the adjusting entry should be:

Question

Quizplus · Accepted Answer

The adjusting entry should be the difference between the estimated uncollectible accounts ($7,200) and the existing credit balance in the Allowance for Uncollectible Accounts ($2,000), which is $5,200.

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