An Aging Of A Company's Accounts Receivable Indicates That | MCQ Solution

An Aging Of A Company's Accounts Receivable Indicates That $6,000 Are Estimated To Be Uncollectible. If Allowance For Doubtful Accounts Has A $2,000 Debit Balance, The Adjustment To Record Bad Debts For The Period Will Require A

The correct answer is (a), as we need to debit Uncollectible Accounts Expense Account (Estimated Bad Debts Expense Account) with the $8000 amount and credit Allowance For Doubtful Debt Accounts with the $8000 amount in order to adjust it for the period.

Required Balance                        $6000

Balance Before Adjustment   - ($2000)

                                                   __________

Adjustment Required                 $8000

                                                  ___________

                                                  ___________