At Year End, Gorgin Design Company Has a $1,800 Credit

question 31

Short Answer

At year end, Gorgin Design Company has a $1,800 credit balance in Allowance for Uncollectible Accounts. If an accounts receiving aging method analysis indicates that an estimated $11,400 of year-end receivables are uncollectible, what will be the balance in Allowance for Uncollectible Accounts after the appropriate adjusting entry for uncollectible accounts has been made? Indicate if the balance is a debit or credit.

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Definitions:

Health Insurance

A kind of insurance policy that reimburses the insured for their medical and surgical bills.

Equilibrium Price

The equilibrium price in the market, where the quantity of items provided meets the quantity of items consumers wish to buy.

Health Insurance

A form of insurance coverage that pays for an individual's medical and surgical expenses.

Defensive Medicine

Medical practices conducted by a physician to avoid malpractice litigation rather than to benefit the patient's health.