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At Year End,Blue Earth Company Has a $3,600 Credit Balance

Question 155

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At year end,Blue Earth Company has a $3,600 credit balance in Allowance for Uncollectible Accounts.If an accounts receiving aging method analysis indicates that an estimated $22,800 of year-end receivables are uncollectible,what will be the balance in Allowance for Uncollectible Accounts after the appropriate adjusting entry for uncollectible accounts has been made? Indicate if the balance is a debit or credit.

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