An aging schedule shows a required balance in Allowance for Doubtful Accounts of $9,600. If there is a credit balance in the allowance account of $2,500 prior to adjustment, the adjustment amount is $7,100.

Question

Quizplus · Accepted Answer

The adjustment amount is calculated by subtracting the existing credit balance ($2,500) from the required balance ($9,600), resulting in an adjustment of $7,100.

An Aging Schedule Shows a Required Balance in Allowance for Doubtful