The General Ledger Controlling Account for Accounts Receivable Shows a Debit

question 67

Short Answer

The general ledger controlling account for Accounts Receivable shows a debit balance of $222,000. The Allowance for Doubtful Accounts has a credit balance of $7,320. An aging report of accounts receivable accounts resulted in an estimate of $42,000 of uncollectible accounts receivable. Calculate the amount of the adjustment, for the allowance for doubtful accounts, using the balance sheet approach.
Amount of the adjustment ________

---

Definitions:

Sole Proprietorships

A form of business entity owned and run by one individual where there is no distinction between the owner and the business.

Million

A numerical term representing one thousand thousands, or 1,000,000, used often to describe quantities or amounts in demographic, financial, and statistical data.

United States

A country located in North America, comprising 50 states, a federal district, five major self-governing territories, and various possessions.

Sole Proprietorships

A business structure where a single individual owns the company and is responsible for its debts and legal liabilities.