Using the percentage of net sales method, uncollectible accounts expense for the year is estimated to be $54,000. If the balance of the Allowance for Uncollectible Accounts is an $18,000 credit before adjustment, what is the balance after adjustment?

Question

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The balance after adjustment is the sum of the existing credit balance ($18,000) and the estimated uncollectible accounts expense ($54,000), resulting in a total of $72,000.

Using the Percentage of Net Sales Method, Uncollectible Accounts Expense