Question

Using the percentage-of-sales method, the estimated total uncollectible accounts are $7,322. The Allowance for Uncollectible Accounts prior to adjustment has a debit balance of $2,635. The Accounts Receivable balance is $44,720. The amount of the adjusting entry for Uncollectible- Accounts Expense is
A. $7,322
B. $9,957.
C. $2,635
D. $4,687

Answer 1

Answer:

B. $9,957.

Explanation:

The computation is adjusted amount for Uncollectible account expense is shown below:

= The estimated total uncollectible accounts + debit balance of Allowance for uncollectible accounts

= $7,322 + $2,635

= $9,957

For computing the adjusted amount we added the estimated total uncollectible accounts and the debit balance of Allowance for uncollectible accounts