Using the aging-of-accounts-receivable method,you estimate that total uncollectible accounts are $3,800.The Allowance for Uncollectible Accounts prior to adjustment has a credit balance of $1,100.The amount of the adjusting entry should be:

Question

Quizplus · Accepted Answer

The adjusting entry should increase the Allowance for Uncollectible Accounts to reflect the estimated total uncollectible accounts.

The Allowance for Uncollectible Accounts prior to adjustment has a credit balance of $1,100. Therefore, the adjusting entry should be:

Estimated uncollectible accounts - current balance of Allowance for Uncollectible Accounts = Adjusting entry

$3,800 - $1,100 = $2,700

Therefore, the correct choice is C.

Using the Aging-Of-Accounts-Receivable Method,you Estimate That Total Uncollectible Accounts Are