Using The Percentage-Of-Receivables Method For Recording Bad Debt Expense, Estimated Uncollectible Accounts Are

Using The Percentage-Of-Receivables Method For Recording Bad Debt Expense, Estimated Uncollectible Accounts Are $45,000. If The Balance Of The Allowance For Doubtful Accounts Is $6,000 Debit Before Adjustment, What Is The Balance After Adjustment?

You May Also Be Interested In “The Allowance For Doubtful Accounts Is A Contra Asset Account That Equals”

The correct choice is (a) as estimated uncollectible accounts are predetermind as $45,000 which is the total of uncollectible accounts’ balance which we expected not to collect from our customers for the accounting period. So, before and after Adjustment, the balance remains unchanged.