The allowance for uncollectible accounts currently has a credit balance of $900. After analyzing the accounts in the accounts receivable subsidiary ledger, the company's management estimates that uncollectible accounts will be $15,000. What will be the amount of allowance for uncollectible accounts reported on the balance sheet?
A) $15,000
B) $14,900
C) $15,900
D) $14,100

Question

Quizplus · Accepted Answer

The allowance for uncollectible accounts will be reported as $15,000 on the balance sheet, as this is the estimated total amount of uncollectible accounts determined by the company's management, regardless of the current balance in the allowance account.

The Allowance for Uncollectible Accounts Currently Has a Credit Balance