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On December 31, prior to adjustment, Allowance for Doubtful Accounts has a debit balance of $400....

On December 31, prior to adjustment, Allowance for Doubtful Accounts has a debit balance of $400. An analysis of the aging of the accounts receivable produces an estimate of $3,100 of probable losses from uncollectible accounts. The adjusting entry needed to record the estimated losses from uncollectible accounts is

A. $3,100

B. $3,500

C. $2,700

D. $400

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Answer #1

Adjusting entry amount = Estimated uncollectible+Debit balance

                                   = 3100+400

Adjusting entry = 3500

So answer is b) $3500

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