The amount of uncollectible accounts at the end of the year is estimated to be $31,000, using the aging of accounts receivable method. The balance in the Allowance of Doubtful Accounts account is an $10,400 credit before adjustment. What is the adjusted balance of the Allowance for Doubtful Accounts at the end of the year?

$20,600

Explanation: Allowance for doubtful account is shows amount to be paid as it nets against receivables.

Debts, loans or credits which are not likely to be recovered by the company due to certain reasons including improper documentation are called the uncollectible account.

Amount of uncollectible account = $31,000

Allowance for doubtful account = $10,400 (CREDIT)

Adjustment for the allowance of doubtful account = Amount of uncollectible account - Allowance for doubtful account accounts

$31,000 - $10,400 = $20,600

answer; i believe both technician (a) and (b) are correct; /// good luck