Accounting 1A Class Assignment Chapter 8-Receivables The Allowance balance is a $200 credit before adjustment. Uncollectible accounts are estimated to be $2,000. The adjusting entry to record uncollectible accounts is: Date 1 2 GENERAL JOURNAL Description Page Post Debit Credit ref 1 2 If the Allowance balance started with a $200 DEBIT balance and uncollectible accounts are estimated to be $2,000. Now, the adjusting entry to record uncollectible accounts is: Date 1 2 GENERAL JOURNAL Description Page Post Debit Credit ref 1 2 Note: Bad Debt Expense estimate in the prior year was wrong, it was not an error. It was still a good faith estimate and the apparent violation of the matching principle is allowed under GAAP