Balance of allowance for uncollectible accounts at the end of 2022 (before adjustment in 2022) will be Rs 1200
The solution is as follows:
Beginning Balance in 2022: 12000
Less: Write-offs during 2022 (10800)
Ending Balance in 2022: 1200
The Allowance method will not recognize the additional uncollectible amount expense when doing a writer off. It will only do it when the company does the adjusting entry considering their rates and ageing of their accounts
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