At the end of the year dahir incorporated's balance of allowance for uncollectible accounts is $2700 (credit) before adjustment. the company estimates future uncollectible accounts to be $13500. what adjustment would dahir record for allowance for uncollectible accounts?

Given that,

Credit balance of allowance for uncollectible accounts = $2,700

Future uncollectible = $13,500

We need to deduct the credit balance from the amount of future uncollectible.

Bad debt expense:

= Future uncollectible - Credit balance of allowance for uncollectible accounts

= $13,500 - $2,700

= $10,800

Therefore, the journal entry is as follows:

Bad debt expense A/c Dr. $10,800

       To allowance for doubtful debts $10,800

(To record the allowance for uncollectible accounts)

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