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12 February, 22:01

At December 31, Gill Co. reported accounts receivable of $248,000 and an allowance for uncollectible accounts of $1,400 (debit) before any adjustments. An analysis of accounts receivable suggests that the allowance for uncollectible accounts should be 2% of accounts receivable. The amount of the adjustment for uncollectible accounts would be:

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  1. 12 February, 22:17
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    adjustment amount for uncollectible amounts = $3560

    Explanation:

    correct option is A=$6540

    given dа ta:

    receive amount = $248,000

    uncollectible allowance (debit) prior to any adjustment = $1400

    uncollectible amounts allowance = 2% * receive amount

    Explanation:

    the adjustment amount for uncollectible amounts = (248,000 * 2%) - $1400

    = $3560
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