The Year-End Adjusting Entry To Recognized Estimated Uncollectible Accounts Will: | MCQ Question Answer

The correct answer is (B), as at the year-end, the following Adjusting Entry to recognized Estimated Uncollectible Accounts are recorded as shown below:

      Uncollectible Accounts Expense a/c  XXX

 

                                                                  Allowance For Doubtful Accounts a/c  XXX

 

                                            (Allowance For Doubtful Accounts Are Adjusted At The End)

Here Uncollectible Accounts Expense is an estimated expense account which decreases equity on balance sheet and Allowance For Doubtful Accounts Account is a Contra Asset Account which decreases Accounts Receivable (Current Asset) on balance sheet. So, the correct answer of this MCQ is (B).