The following accounts were abstracted from Almond Co.'s unadjusted trial balance at December 31, 2019: $\begin{array}{c}
\begin{array}{lll}
\
\text {Accounts receivable}\
\text {Allowance for uncollectible accounts}\
\text {Net credit sales}
\end{array}
\begin{array}{lll}
\underline{\text {Debit}}\
\$ 3,850,000 \
\
\
\end{array}
\begin{array}{lll}
\underline{\text { Credit }}\
\
51,000\
\$5,950,000
\end{array}
\end{array}$
The company estimates that 5 percent of the gross accounts receivable will become uncollectible. After adjustment at December 31, 2019, the allowance for doubtful accounts should have a credit balance of

Question

The following accounts were abstracted from Almond Co.'s unadjusted trial balance at December 31, 2019: $\begin{array}{c}
\begin{array}{lll}
\
\text {Accounts receivable}\
\text {Allowance for uncollectible accounts}\
\text {Net credit sales}
\end{array}
\begin{array}{lll}
\underline{\text {Debit}}\
\$ 3,850,000 \
\
\
\end{array}
\begin{array}{lll}
\underline{\text { Credit }}\
\
51,000\
\$5,950,000
\end{array}
\end{array}$
 The company estimates that 5 percent of the gross accounts receivable will become uncollectible. After adjustment at December 31, 2019, the allowance for doubtful accounts should have a credit balance of

Quizplus · Accepted Answer

The company estimates 5% of the gross accounts receivable ($3,850,000) as uncollectible, which equals $192,500. This is the desired credit balance in the Allowance for Doubtful Accounts after adjustment.

The Following Accounts Were Abstracted from Almond Co The Company Estimates That 5 Percent of the Gross Accounts