At December 31,before adjusting and closing the accounts had occurred,the Allowance for Doubtful Accounts of Seaboard Corporation showed a debit balance of $3,200.An aging of the accounts receivable indicated the amount probably uncollectible to be $2,100.Under these circumstances,a year-end adjusting entry for uncollectible accounts expense would include a:
A)Debit to the Allowance for Doubtful Accounts for $1,100.
B)Credit to the Allowance for Doubtful Accounts for $1,100.
C)Debit to Uncollectible Accounts Expense of $2,100.
D)Debit to Uncollectible Accounts Expense of $5,300.

Question

Quizplus · Accepted Answer

The correct adjusting entry needs to increase the Allowance for Doubtful Accounts to the desired balance of $2,100. Since there's already a debit balance of $3,200, adding $5,300 (to get a credit balance of $2,100) is necessary. This is done by debiting Uncollectible Accounts Expense for $5,300 and crediting Allowance for Doubtful Accounts for the same amount.

At December 31,before Adjusting and Closing the Accounts Had Occurred,the