An indicates that the amount of uncollectible accounts is $3,910. The Allowance for Uncollectible Accounts prior to adjustment has a debit balance of $600. The Accounts Receivable balance is $44,620. The amount of the adjusting entry for uncollectible accounts should be for:

$3,310

Explanation:

An aging of accounts receivable indicates that the amount of uncollectible accounts is $3,910.

The Allowance for Uncollectible Accounts prior to adjustment has a debit balance of $600.

The Accounts Receivable balance is $44,620.

The amount of the adjusting entry for uncollectible accounts should be for: $3,910 - $600 = $3,310

Generally, as a rule - Allowance for Uncollectible Accounts has a credit balance, which will be subtracted from the amount estimated to be uncollectible, to get the amount of the adjusting entry.

The question is missing below options:

A) $600.

B) $3,310.

C) $3,910.

D) $4,510.

The correct option is D

Explanation:

The amount of uncollectible debt of $3910 indicates that the allowance for uncollectible debt account  should show a credit balance of $3910 at the end of the period.

Without mincing words, since the allowance for uncollectible debts account already has a debit of $600 already, the adjusting entry needed  is a figure that would change the debit balance of $600 to a credit balance of $3910.

Intuitively, a credit entry of $600 would reverse the earlier debit balance and another credit entry of $3910 would guarantee a final credit balance of $3910,as a result the total credit entries passed equal $4510          ($3910+$600).

The amount of of the adjusting entry for uncollectible accounts should be for $4510

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