Answer:
The adjustment Dahir would record for Allowance for Uncollectible Accounts:
Debit Bad debts expense $9,600
Credit Allowance for Doubtful Accounts $9,600
Explanation:
At the end of the year, before adjustment, Dahir Incorporated’s balance of Allowance for Uncollectible Accounts is $2,400 (credit).
The company estimates uncollectible accounts to be $12,000
Bad debts expense = $12,000 - $2,400 = $9,600
The adjustment to record Allowance for Uncollectible Accounts:
Debit Bad debts expense $9,600
Credit Allowance for Doubtful Accounts $9,600
