The amount of uncollectible accounts at the end of the year is estimated to be $27,500, using the aging of accounts receivable method. The balance in the Allowance of Doubtful Accounts account is an $9,000 credit before adjustment. What is the adjusted balance of the Allowance for Doubtful Accounts at the end of the year?
According to the aging method, The estimated amount that will not be collected should be the credit balance in the contra asset account Allowance for Doubtful Accounts.