Question

He allowance method of estimating uncollectible accounts receivable based on an analysis of receivables shows that $640 of accounts receivable are uncollectible. Allowance for Doubtful Accounts has a debit balance of $110. The adjusting entry at the end of the year will include a credit to Allowance for Doubtful Accounts in the amount of:
(A) $530
(B) $640
(C) $750
(D) $110

Answer 1

Answer: The adjusting entry at the end of the year will include a credit to Allowance for Doubtful Accounts in the amount of:  $750

Given:

Accounts receivable = $640

Allowance for Doubtful Accounts = $110

Therefore, the correct option is (c).