Question
Question 8 0.3 pts Using the data from page 5-4 of the VLN, assume that instead of having a $500 credit balance in the
Question 8 0.3 pts Using the data from page 5-4 of the VLN, assume that instead of having a $500 credit balance in the Allowance for Uncollectible Accounts (AUA), the company had a $600 credit balance in the account. How would that affect the ending balance in the AUA after the company prepared the adjusting entry and posted it to the AUA? The higher balance before the adjusting entry would cause the ending balance in the AUA to increase. The higher balance before the adjusting entry does not impact the ending balance in the AUA after the adjusting entry. The higher balance before the adjusting entry would cause the ending balance in the AUA to decrease. There is no adjusting entry to record if there is a balance in the AUA at the end of the period.
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