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11 December, 14:12

The Allowance for Bad Debts account has a debit balance of $ 9 comma 000$9,000 before the adjusting entry for bad debts expense. After analyzing the accounts in the accounts receivable subsidiary ledger, the company's management estimates that uncollectible accounts will be $ 12 comma 000$12,000. What will be the amount of the adjustment in the Allowance for Bad Debts account?

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  1. 11 December, 14:52
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    the amount of the adjustment in the Allowance for

    Bad Debts account $3.000

    Explanation:

    Initial Balance

    Allowance for Uncollectible Accounts $ 9.000

    END Balance

    Allowance for Uncollectible Accounts $ 12.000

    The adjustment entry in the accountig will be

    Bad debt expense $ 3.000

    Allowance for Uncollectible Accounts $ 3.000
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