Assume the following unadjusted account balances at the end of the accounting period: Accounts Receivable, $50,000; Allowance for Doubtful Accounts, $700 (negative balance); and Net sales, $600,000. If the company's past experience indicates credit losses of 1% of net sales, the effect on the financial statements of the adjustment to estimate uncollectible accounts is:

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The Answer of Assume the following unadjusted account balances at the end of the accounting period: Accounts Receivable, $50,000; Allowance for Doubtful Accounts, $700 (negative balance); and Net sales, $600,000. If the company's past experience indicates credit losses of 1% of net sales, the effect on the financial statements of the adjustment to estimate uncollectible accounts is:

Assume the Following Unadjusted Account Balances at the End of the Accounting