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6 July, 23:46

The amount of uncollectible accounts at the end of the year is estimated to be $25,000, using the aging of accounts receivable method. The balance in the Allowance of Doubtful Accounts account is an $8,000 credit before adjustment. What is the adjusted balance of the Allowance for Doubtful Accounts at the end of the year? Multiple Choice a.$25,000 b. $33,000 c. $17,000 d. $8,000

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  1. 7 July, 03:16
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    Correct answer is C.

    $17,000 is the adjusted balance

    Explanation:

    The amount of uncollectible accounts at the end of the year is estimated to be $25,000.

    The balance in the Allowance of Doubtful Accounts account is an $8,000 credit before adjustment

    Bad Debt Expense = uncollectible accounts at the end of the year - Existing credit balance in allowance for doubtful accounts or + existing debit balance in allowance for doubtful accounts

    Bad debts expense for the period = 25,000 - 8,000

    = $17,000
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