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Brown Company's account balances at December 31, 2020 for Accounts Receivable and the related Allowance for Doubtful Accounts are $920,000 debit and $2,100 credit, respectively. From an aging of accounts receivable, it is estimated that $39,000 of the December 31 receivables will be uncollectible. The necessary adjusting entry would include a credit to the allowance account for:_______

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Answer:

$36,900

Explanation:

Brown Company's

Account receivable and related Allowance for doubtful account $2,100 credit

$39,000 receivables uncollectible

Hence:

$39,000 – $2,100

= $36,900

Therefore the necessary adjusting entry would include a credit to the allowance account for: $36,900

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