Using the percentage of net sales method,uncollectible accounts expense for the year is estimated to be $44,000.If the balance of the Allowance for Uncollectible Accounts is a $9,000 credit before adjustment,what is the balance after adjustment?
A)$9,000
B)$35,000
C)$44,000
D)$53,000

Question

Quizplus · Accepted Answer

The balance after adjustment is calculated by adding the estimated uncollectible accounts expense for the year ($44,000) to the existing credit balance in the Allowance for Uncollectible Accounts ($9,000), resulting in a new balance of $53,000.

Using the Percentage of Net Sales Method,uncollectible Accounts Expense for the Year