Question

on december 31 prior to adjustment allowance for doubtful accounts has a credit balance of $200. an aging analysis of the accounts receivable produces an estimate of $1,000 of probable losses from uncollectible accounts. The adjusting entry needed to record the estimated losses from uncollectible accounts is made for

Answer 1

Answer:

$800

Explanation:

Given that

Credit balance of allowance for doubtful debts = $200

Estimate amount from uncollectible accounts = $1,000

So, by considering the above information, the estimated losses from uncollectible account is

= Estimate amount from uncollectible accounts - Credit balance of allowance for doubtful debts

= $1,000 - $200

= $800