The following accounts were abstracted from Almond Co.'s unadjusted trial balance at December 31, 2019: $\begin{array}{c}
\begin{array}{lll}
\
\text {Net credit sales}\
\text {Accounts receivable}\
\text {Allowance for uncollectible accounts}
\end{array}
\begin{array}{lll}
\underline{\text {Debit}}\
\
\$800,000\
\
\end{array}
\begin{array}{lll}
\underline{\text { Credit }}\
\$2,950,000\
\
11,000
\end{array}
\end{array}$
The company estimates that 1.5 percent of the net credit sales 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: $\begin{array}{c}
\begin{array}{lll}
\
\text {Net credit sales}\
\text {Accounts receivable}\
\text {Allowance for uncollectible accounts}
\end{array}
\begin{array}{lll}
\underline{\text {Debit}}\
\
\$800,000\
\
\end{array}
\begin{array}{lll}
\underline{\text { Credit }}\
\$2,950,000\
\
11,000
\end{array}
\end{array}$
 The company estimates that 1.5 percent of the net credit sales will become uncollectible. After adjustment at December 31, 2019, the allowance for doubtful accounts should have a credit balance of

Quizplus · Accepted Answer

The allowance for doubtful accounts should be adjusted to reflect 1.5% of net credit sales as uncollectible. 1.5% of $2,950,000 is $44,250. Adding the existing credit balance of $11,000 gives a total of $55,250.

The Following Accounts Were Abstracted from Almond Co The Company Estimates That 1