An estimate based on an analysis of receivables shows that $790 of accounts receivables are uncollectible. the allowance for doubtful accounts has a debit balance of $120. the adjusting entry at the end of the year will include a credit to allowance for doubtful accounts in the amount of:

The  adjusting entry at the end of the year will include a credit to allowance for doubtful accounts in the amount of $910.

Explanation:

Allowance for Doubtful Accounts balance should be Credit balance, Since we have $120 debit balance and want to create $790 Allowance for Doubtful Accounts credit balance we have to credit Allowance for Doubtful Accounts by ($790 + $120 = $910) to get Allowance for Doubtful Accounts $790 Credit balance.

Therefore, The  adjusting entry at the end of the year will include a credit to allowance for doubtful accounts in the amount of $910.

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