In 2022 Pina Colada Corp. had net credit sales of $2200000. On January 1, 2022, Allowance for Doubtful Accounts had a creditbalance of $60500. During 2022, $99000 of uncollectible accounts receivable were written off. Past experience indicates that theallowance should be 10% of the balance in receivables (percentage of receivables basis). If the accounts receivable balance atDecember 31 was $650000, what is the required adjustment to the Allowance for Doubtful Accounts at December 31, 2022?O $30000O $65000O $99000O $103500

The allowance is a method for estimating and accounting for probable bad debts, and the Bad Debts…

Answered: During 2022, $99000 of uncollectible…

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During 2022, $99000 of uncollectible accounts r 10% of the balance in receivables (percentage o

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Question

In 2022 Pina Colada Corp. had net credit sales of $2200000. On January 1, 2022, Allowance for Doubtful Accounts had a credit
balance of $60500. During 2022, $99000 of uncollectible accounts receivable were written off. Past experience indicates that the
allowance should be 10% of the balance in receivables (percentage of receivables basis). If the accounts receivable balance at
December 31 was $650000, what is the required adjustment to the Allowance for Doubtful Accounts at December 31, 2022?
O $30000
O $65000
O $99000
O $103500

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