On December 31, Prior to Adjustment, Allowance for Doubtful Accounts

question 74

Multiple Choice

On December 31, prior to adjustment, Allowance for Doubtful Accounts has a credit balance of
$630. An analysis of the accounts receivable aging estimates $2,850 of probable losses from uncollectible accounts. The adjusting entry needed to record the estimated losses from uncollectible accounts is

• A)$2,220.
• B)$3,480.
• C)$2,850.
• D)$630.

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