At December 31,Tremble Music had account balances in Accounts Receivable of $300,000 and in Allowance for Uncollectible Accounts of $1,000 (debit)before any adjustments.An analysis of Tremble's December 31 accounts receivable suggests that 5% of the account balances are not expected to be collected.The balance of Allowance for Uncollectible Accounts after adjustment will be:

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The adjusted balance in the Allowance for Uncollectible Accounts is calculated as 5% of the Accounts Receivable ($300,000), which is $15,000. Since the account had a debit balance of $1,000 before adjustment, this amount is added to the required allowance, resulting in a need to adjust the allowance to a credit balance of $15,000 to reflect the expected uncollectible accounts accurately.

At December 31,Tremble Music Had Account Balances in Accounts Receivable