At December 31,Gill Co.reported accounts receivable of $238,000 and an allowance for uncollectible accounts of $600 (credit)before any adjustments.An analysis of accounts receivable suggests that the allowance for uncollectible accounts should be 3% of accounts receivable.The amount of the adjustment for uncollectible accounts would be:

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The correct answer is A. The amount of the adjustment for uncollectible accounts would be $6,540. The allowance for uncollectible accounts should be 3% of accounts receivable, which is $238,000 x 3% = $7,140. The current allowance for uncollectible accounts is $600, so the adjustment needed is $7,140 - $600 = $6,540.