Assume the following unadjusted account balances at the end of the accounting period: Accounts Receivable, $15,000; Allowances for Uncollectible Accounts, -$400 (negative balance); Net sales, $120,000. If the company's past experience indicates credit losses of 2% of net sales, the effect of the adjustment to estimate uncollectible accounts on the financial statements is:

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The Answer of Assume the following unadjusted account balances at the end of the accounting period: Accounts Receivable, $15,000; Allowances for Uncollectible Accounts, -$400 (negative balance); Net sales, $120,000. If the company's past experience indicates credit losses of 2% of net sales, the effect of the adjustment to estimate uncollectible accounts on the financial statements is:

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