If uncollectible accounts are determined by the aging of receivables method to be $1,150, the uncollectible account expense for 2014 would be $350. The balance of the allowance account after the adjusting entry would be?

Question

Business

Madilynn Hunter

17 December, 23:01

If uncollectible accounts are determined by the aging of receivables method to be $1,150, the uncollectible account expense for 2014 would be $350. The balance of the allowance account after the adjusting entry would be?

+3

Answers (1)

Know the Answer?

Osvaldo Fry · Answer 1

the blaance after the adjusting entry will be of 1,150

as the aging method determinates the allowance based on accounts receivables the amount of 1,150 is the amount we should get at year-end

Explanation:

When the allowance is determinate there are two types of method:

those who when calculate give the amount of the adjustment:

percentage of sale

percentage of credit sale

That's because those are calcualte base on a flow.

and those who give the amount after adjustment and the adjustment is made to reach that amount:

aging method

percentage of account receivable

These are calcualte based on the "stock" of accounts receivables