Question

The Allowance for Bad Debts account has a debit balance of $ 9 comma 000$9,000 before the adjusting entry for bad debts expense. After analyzing the accounts in the accounts receivable subsidiary​ ledger, the​ company's management estimates that uncollectible accounts will be $ 12 comma 000$12,000. What will be the amount of the adjustment in the Allowance for Bad Debts​ account?

Answer 1

the amount of the adjustment in the Allowance for

Bad Debts​ account $3.000

Step-by-step explanation:

Initial Balance

Allowance for Uncollectible Accounts $ 9.000

END Balance

Allowance for Uncollectible Accounts $ 12.000

The adjustment entry in the accountig will be

Bad debt expense $ 3.000

Allowance for Uncollectible Accounts $ 3.000