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25 August, 14:00

Using the percentage-of-receivables method for recording bad debt expense, estimated uncollectible accounts are $45,000. If the balance of the Allowance for Doubtful Accounts is a $6,000 debit before adjustment, what is the balance after adjustment?

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  1. 25 August, 14:26
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    balanced after adjustment $39,000

    Explanation:

    GIVEN dа ta:

    uncollectible accounts is $45,000

    allowance balance = $6000

    The bad debt account is the difference between the calculated ledger balance and actual ledger balanced.

    balanced after adjustment can be determined by suing following relation:

    Bad debt expense = uncollectible accounts - balance of the Allowance

    = $45000 - $6000

    = $39,000
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