Question

The allowance method of estimating uncollectible accounts receivable based on an analysis of receivables shows that $640 of accounts receivable are uncollectible. Allowance for Doubtful Accounts has a debit balance of $110. The adjusting entry at the end of the year will include a credit to Allowance for Doubtful Accounts in the amount of ______. a) $ 530 b) $ 640 c) $ 750 d) $ 110

Answer 1

c) $ 750

Explanation:

At the beggining of the year the company started with some accounts owing to them a balance of $110 and additionally during the year it added $640. So whan you add those two up the credit given to satisfy that amount is $750.