A company has net credit sales of $700,000 for the year and it estimates that uncollectible accounts will be 2% of sales.If Allowance for Doubtful Accounts has a credit balance of $1,000 prior to adjustment, its balance after adjustment will be a credit of

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The estimated uncollectible accounts are 2% of $700,000, which is $14,000. Since there is already a $1,000 credit balance in the Allowance for Doubtful Accounts, the balance after adjustment will be $14,000 (estimated uncollectibles) + $1,000 (existing balance) = $15,000.

A Company Has Net Credit Sales of $700,000 for the Year