The following accounts were abstracted from Almond Co.'s unadjusted trial balance at December 31, 2013: Debit Credit
Net credit sales $2,950,000
Accounts receivable $800,000
Allowance for uncollectible accounts 11,000
The company estimates that 1.5 percent of the net credit sales will become uncollectible. After adjustment
At December 31, 2013, the allowance for doubtful accounts should have a credit balance of

Question

Quizplus · Accepted Answer

To find the adjusted balance of the allowance for uncollectible accounts, we need to determine the estimated amount of uncollectible accounts based on the net credit sales. 1.5% of $2,950,000 is $44,250. Therefore, the allowance for uncollectible accounts should have a credit balance of $11,000 + $44,250 = $33,250. Option C is the only choice that matches this amount.

The Following Accounts Were Abstracted from Almond Co