After aging the accounts receivable, it is estimated that $790 will not be collected and the allowance account has an existing debit balance of $230. The adjusting entry under the aging approach would be for the amount of
A) $790.
B) $230.
C) $560.
D) $1,020.

Question

Quizplus · Accepted Answer

The adjusting entry should bring the allowance account to the estimated uncollectible amount of $790. Since there is a debit balance of $230, you need to credit $1,020 to offset the debit and reach the desired credit balance.

After Aging the Accounts Receivable, It Is Estimated That $790