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    lopezap1's Avatar
    lopezap1 Posts: 13, Reputation: 1
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    #1

    Jul 17, 2012, 07:32 PM
    Accounts receivable
    An aging-of-accounts-receivable method indicates that amount of uncollectible accounts is $7,200.
    The Allowance for Uncollectible Accounts prior to adjustment has a debit balance of $2,000. The amount of the
    Adjusting entry for uncollectible accounts expense should be:
    A) $9,200.
    B) $7,200.
    C) $5,200. I think answer is??
    D) $2,000.
    ArcSine's Avatar
    ArcSine Posts: 969, Reputation: 106
    Senior Member
    		  
    #2

    Jul 18, 2012, 04:01 AM
    You'd be correct, if it wasn't for a subtle curve ball the question is throwing at you. Re-read the second sentence carefully, then have another go at it.
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