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Ariel Inc. uses the allowance method of accounting for uncollectible accounts receivable and estimates that 2%...

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Accounting

Ariel Inc. uses the allowance method of accounting foruncollectible accounts receivable and estimates that 2% of thecredit sales of $1,650,000 for the year ended will beuncollectible. Allowance for Doubtful Accounts has a negativeunadjusted balance of $(1,600) at the end of the year. Determinethe amount of the adjustment to record the provision for doubtfulaccounts.

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4.3 Ratings (611 Votes)
1 The allowance for Doubtful account has a negative unadjusted balance of 1600 That means it has a credit balance of 1600 2 Calculation of Uncollectible amount at the end of the Year    See Answer
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