A trial balance before adjustments included the following: Debit Credit Sales $1650000 $56400 160000 Sales returns and allowance Accounts receivable Allowance for doubtful accounts 2120 If the estimate of uncollectible accounts is made by taking 6% of gross accounts receivables, the amount of the adjustment is
Bad Debts
At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
![A trial balance before adjustments included the following:
Debit
Credit
Sales
$1650000
Sales returns and allowance
$56400
Accounts receivable
160000
Allowance for doubtful accounts
2120
If the estimate of uncollectible accounts is made by taking 6% of gross accounts receivables, the amount of the adjustment is
$9473.
$11720.
$7480.
$9600.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3f27f223-4172-4187-83b8-4a30b69fff93%2F82d1713f-e239-4152-9cf6-137e60170e0a%2Fptk18u_processed.png&w=3840&q=75)
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