Using the Allowance Method, the Uncollectible Accounts for the Year

question 206

Multiple Choice

Using the allowance method, the uncollectible accounts for the year are estimated to be $40,000. If the balance for the Allowance for Doubtful Accounts is a $9,000 credit before adjustment, what is the balance after adjustment?

• A) $9,000
• B) $31,000
• C) $40,000
• D) $49,000

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