Question

At the end of the current year, Accounts Receivable has a balance of $490,000; Allowance for Doubtful Accounts has a debit balance of $4,500; and sales for the year total $2,210,000. Using the aging method, the balance of Allowance for Doubtful Accounts is estimated as $16,700. Determine the amount of the adjusting entry for uncollectible accounts.

Answer 1

Answer:

$21,200

Explanation:

The computation of the amount of the adjusting entry for uncollectible accounts is shown below:

= Estimated amount of Allowance for Doubtful Accounts balance + debit balance of Allowance for Doubtful Accounts

= $16,700 + $4,500

= $21,200

Simply we added the estimated amount and the debit balance so that the accurate amount can come

All other information which is given is not relevant. Hence, ignored it