The amount of uncollectible accounts at the end of the year is estimated,using the aging of receivables method,to be $25,000.The balance in the Allowance for Doubtful Accounts account is an $8,000 credit before adjustment.What should the balance in the Allowance for Doubtful Accounts account be after adjustment?

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The balance in the Allowance for Doubtful Accounts should be adjusted to match the estimated uncollectible accounts, which is $25,000. Since there is already an $8,000 credit balance, an additional $17,000 adjustment is needed to reach the $25,000 estimate.

The Amount of Uncollectible Accounts at the End of the Year