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:

Flexibility

The capacity to be easily modified or adapted to accommodate new conditions or circumstances.

Divergent Thinking

A thought process or method used to generate creative ideas by exploring many possible solutions.

Task Conflict

A disagreement or dispute among team members related to the content and outcomes of the tasks being performed.

Relationship Conflict

Interpersonal discord arising from differences in values, personalities, or interests among members of a group or team.