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a & b$.$ Under the analysis of receivables method, Allowance for Doubtful Accounts is the focus of the estimation process. The amount of the adjusting entry is the

amount that will yield an adjusted balance for Allowance for Doubtful Accounts equal to that estimated by the aging schedule. So$,$ if the unadjusted balance of the

allowance account has a negative balance, this will be subtracted from the estimated doubtful account estimate, and if the unadjusted balance has a positive

balance it will be added to the estimated doubtful account estimate to determine the adjustment.