If after aging the accounts receivables, it is estimated that $1,800 will not be collected and the allowance account has an existing credit balance of $300, the adjusting entry would be for the amount of $1,500.

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The existing credit balance in the allowance account reduces the amount of bad debt expense needed to cover the estimated uncollectible accounts, so the adjusting entry would be for the net amount of $1,500 ($1,800 estimated uncollectible - $300 existing credit balance).

If After Aging the Accounts Receivables, It Is Estimated That