Refer to the information in BE54, but now assume that the balance of Allowance for Uncollectible Accounts

Question:

Refer to the information in BE5–4, but now assume that the balance of Allowance for Uncollectible Accounts before adjustment is $600 (debit). The company still estimates future uncollectible accounts to be 12% of What is the adjustment Mercy Cosmetics would record for Allowance for Uncollectible Accounts? Does the amount of the adjustment differ from BE5–4? If so, why?
In BE5–4, 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...