The Allowance for Bad Debts account has a credit balance of $8,300 before the adjusting entry for bad debts expense.After analyzing the accounts in the accounts receivable subsidiary ledger using the aging-of-receivables method,the company's management estimates that uncollectible accounts will be $14,700.What will be the balance of the Allowance for Bad Debts reported on the balance sheet?

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The Allowance for Bad Debts account is increased by the amount of estimated uncollectible accounts, which is $14,700. Since the account has a credit balance of $8,300 before the adjusting entry, the new balance will be $14,700 - $8,300 = $6,400.

The Allowance for Bad Debts Account Has a Credit Balance