Blue Corp.’s account balances at December 31, 2017 included Accounts Receivable, $385,000 debit; Allowance for Doubtful Accounts, $2,500 credit. From a review of the receivables, Blue estimates that $14,000 of the December 31 receivables will be uncollectible. The required adjusting entry would include a credit to the allowance account for
A. $ 2,500.
B. $16,500.
C. $14,000.
D. $11,500.
Answer:D
Blue Corp.’s account balances at December 31, 2017 included Accounts Receivable, $385,000 debit; Allowance for Doubtful Accounts, $2,500 credit. From a review of the receivables, Blue estimates that $14,000 of the December 31 receivables will be uncollectible. The required adjusting entry would include a credit to the allowance account for
A. $ 2,500. B. $16,500. C. $14,000. D. $11,500.