On December 31, Prior to Adjustment, Allowance for Doubtful Accounts

Multiple Choice

On December 31, prior to adjustment, Allowance for Doubtful Accounts has a credit balance of
$630. An analysis of the accounts receivable aging estimates $2,850 of probable losses from uncollectible accounts. The adjusting entry needed to record the estimated losses from uncollectible accounts is

A) $2,220.
B) $3,480.
C) $2,850.
D) $630.