At the end of the year, Mercy Cosmetics balance of Allowance for Uncollectible Accounts is $600 (credit) before adjustment The balance of Accounts Receivable is $25,000 The company estimates that 12 of accounts will not be collected over the next year What adjustment would Mercy Cosmetics record fo...

At the end of the year, Mercy Cosmetics balance of Allowance for Uncollectible Accounts is $600 (credit)

Question:

At the end of the year, Mercy Cosmetics’ balance of Allowance for Uncollectible Accounts is $600 (credit) before adjustment. The balance of is $25,000. The company estimates that 12% of accounts will not be collected over the next year. What adjustment would Mercy Cosmetics record for Allowance for Uncollectible Accounts?

Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...