A firm's $90,000 Accounts Receivable balance at December 31 consisted of $80,000 current balances and $10,000 past-due balances. At December 31, the Allowance for Uncollectible Accounts had a balance of $800. The firm estimated that 2% of current balances and 15% of past-due balances will prove uncollectible. The effect of the adjustment to record credit losses on the financial statements is:

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The Answer of A firm's $90,000 Accounts Receivable balance at December 31 consisted of $80,000 current balances and $10,000 past-due balances. At December 31, the Allowance for Uncollectible Accounts had a balance of $800. The firm estimated that 2% of current balances and 15% of past-due balances will prove uncollectible. The effect of the adjustment to record credit losses on the financial statements is:

A Firm's $90,000 Accounts Receivable Balance at December 31 Consisted