Answer:
D. $1,375,000.
Explanation:
Funn Company's
Account balances
At December 31, 2020,
Accounts receivable $1,500,000
Allowance for uncollectible accounts $90,000
Bad Debts December 31 $125,000
When the allowance for uncollectible method is used only the allowance for uncollectibles is deducted for the accounts receivable for financial statements
$1,500,000 - $90,000=$ 1410,000
But as the Bad debts ( uncollectibles) is higher than the allowance for uncollectibles the bad debts will be deducted from the accounts receivables.
The allowance of uncollectibles will be raised to the amount of bad debts.
so the the accounts receivable amount expected to be collected after adjustment is $1,500,000 - $125,000=$ 1375,000
