ABC Company is preparing their year-end financial statements. On December 31, 2021, the balance

in Accounts Receivable was $680,000. An aging analysis of the accounts receivable indicated that

$16,500 of the accounts receivable is expected to be uncollectible.Prepare the adjusting journal entry to record estimated uncollectible accounts receivable under

each of the following independent assumptions:

1. Allowance for Doubtful Accounts has a credit balance of $3,200 before adjustment. ( 2 Marks )

2. Allowance for Doubtful Accounts has a debitbalance of $730 before adjustment. ( 2 Marks )

ii) Determine the carrying amount of accounts receivable on December 31, 2021 (after

adjustment) under each assumption. ( 1 Mark )