On December 31, 2019, prior to adjustments, the Allowance for Doubtful Accounts has a debit balance of $750. An aging of the accounts receivable produces an estimate of $6,500 of probable losses from uncollectible accounts.
-The adjusting entry needed to record the estimated losses from uncollectible accounts includes a:

Question

On December 31, 2019, prior to adjustments, the Allowance for Doubtful Accounts has a debit balance of $750. An aging of the accounts receivable produces an estimate of $6,500 of probable losses from uncollectible accounts. 
-The adjusting entry needed to record the estimated losses from uncollectible accounts includes a:

Quizplus · Accepted Answer

The Allowance for Doubtful Accounts needs to have a credit balance of $6,500 after adjustment. Since it currently has a debit balance of $750, you need to credit it by $7,250 to offset the debit and reach the desired credit balance.

On December 31, 2019, Prior to Adjustments, the Allowance for Doubtful