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23 November, 03:41

If uncollectible accounts are determined by the aging of receivables method to be $1,150, the uncollectible account expense for 2014 would be $350. The balance of the allowance account after the adjusting entry would be?

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  1. 23 November, 03:52
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    the blaance after the adjusting entry will be of 1,150

    as the aging method determinates the allowance based on accounts receivables the amount of 1,150 is the amount we should get at year-end

    Explanation:

    When the allowance is determinate there are two types of method:

    those who when calculate give the amount of the adjustment:

    percentage of sale

    percentage of credit sale

    That's because those are calcualte base on a flow.

    and those who give the amount after adjustment and the adjustment is made to reach that amount:

    aging method

    percentage of account receivable

    These are calcualte based on the "stock" of accounts receivables
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