At December 31, Gill Co. reported accounts receivable of $248,000 and an allowance for uncollectible accounts of $1,400 (debit) before any adjustments. An analysis of accounts receivable suggests that the allowance for uncollectible accounts should be 2% of accounts receivable. The amount of the adjustment for uncollectible accounts would be:

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Business

Averie Wallace

1 July, 20:32

At December 31, Gill Co. reported accounts receivable of $248,000 and an allowance for uncollectible accounts of $1,400 (debit) before any adjustments. An analysis of accounts receivable suggests that the allowance for uncollectible accounts should be 2% of accounts receivable. The amount of the adjustment for uncollectible accounts would be:

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Priscilla Warren · Answer 1

adjustment amount for uncollectible amounts = $3560

Explanation:

correct option is A=$6540

given dа ta:

receive amount = $248,000

uncollectible allowance (debit) prior to any adjustment = $1400

uncollectible amounts allowance = 2% * receive amount

Explanation:

the adjustment amount for uncollectible amounts = (248,000 * 2%) - $1400

= $3560