The amount of the year-end adjustment for Allowance for Bad Debts is equal to the aging percent of uncollectible accounts multiplied by the amount of accounts receivable.

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The year-end adjustment for Allowance for Bad Debts is calculated by applying the aging percent of uncollectible accounts to the accounts receivable balance, but it also considers the existing balance in the allowance account to determine the adjustment needed.

The Amount of the Year-End Adjustment for Allowance for Bad