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Adjusted balance in allowance for uncollectible accounts

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Reference no: EM131266405

On January 1, Year4 the Accounts Receivable and the Allowance for Doubtful Accounts carried NORMAL balances of $30,000 and $500, respectively.

(The 30,000 is a positive asset and the 500 is a negative asset.)

During the year the company reported $70,000 of credit sales.

There were $550 of receivables written-off as uncollectible in Year4.

Cash collections of receivables amounted to $74,550.

The company recorded $700 of bad debt expense for Year4.

What will be the ADJUSTED balance in the allowance for uncollectible accounts at the end of Year4?

A. $550 normal balance [credit balance]

B. $650 normal balance [credit balance]

C. $50 normal balance [credit balance]

D. $700 normal balance [credit balance]

E. $1200 normal balance [credit balance]

Reference no: EM131266405

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