If after aging the accounts receivables, it is estimated that $900 will not be collected and the allowance account has an existing debit balance of $200, the adjusting entry would be for the amount of $700.

Question

Quizplus · Accepted Answer

The adjusting entry should be for $1,100 to account for the $900 estimated uncollectible amount plus the $200 existing debit balance in the allowance account.

If After Aging the Accounts Receivables, It Is Estimated That