At December 31,Gill Co.reported accounts receivable of $238,000 and an allowance for uncollectible accounts of $600 (debit)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 required allowance is 3% of $238,000, which is $7,140. Since there is already a $600 debit balance, the adjustment needed is $7,140 + $600 = $7,740.