Refer to the information in BE5–9, but now assume that the balance of Allowance for Uncollectible Accounts before adjustment is $3,000 (debit). The company still estimates future uncollectible accounts to be $15,000. What is the adjusting entry Dahir would record for Allowance for Uncollectible Accounts? Does the amount of the adjustment differ from BE5–9? If so, why?

Data from in BE5-9

At the end of the year, Dahir Incorporated’s balance of Allowance for Uncollectible Accounts is $3,000 (credit) before adjustment. The company estimates future uncollectible accounts to be $15,000. What adjusting entry would Dahir record for Allowance for Uncollectible Accounts?