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

question 55

Multiple Choice

On December 31, prior to adjustment, Allowance for Doubtful Accounts has a debit balance of
$630. An analysis of the accounts receivable aging estimates $2,850 of probable losses from uncollectible accounts. The ending balance in Allowance for Doubtful Accounts after adjustment is

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