See Cheaters Corp. question setup. What is the balance in the allowance for uncollectible accounts at 12/31/Year3 (before any adjusting entries)?

Hint: Remember this is before the adjusting entries, so this means you are calculating the balance before the company would have booked the adjusting entry to recognize the Year3 allowance adjustment.

a. $400 debit (abnormal)

b. $400 credit (normal)

c. $2,400 credit (normal)

d. $2,800 debit (abnormal)

e. none of the above