Question

The amount of uncollectible accounts at the end of the year is estimated to be $37,500, using the aging of accounts receivable method. The balance in the Allowance of Doubtful Accounts account is an $13,000 credit before adjustment. What is the adjusted balance of the Allowance for Doubtful Accounts at the end of the year

Answer 1

Answer:

$37,500

Explanation:

Given that

Uncollectible amount os $37,500

And, the credit balance of the Allowance of Doubtful Accounts  is $13,000

Based on the above information

The adjusted balance of the allowance for doubtful accounts is equivalent to the uncollectible amount i.e. $37,500

The same is to be considered

hence, the answer is $37,500