At the end of the current year, Accounts Receivable has a balance of $5,125,000; Allowance for Doubtful Accounts has a debit balance of $32,600; and sales for the year total $105,550,000. Using the aging method, the balance of Allowance for Doubtful Accounts is estimated as $225,000.

a.  Determine the amount of the adjusting entry for uncollectible accounts.

The question is asking to determine the amount of the adjusting entry for uncollectible accounts using the aging method. Here's how to approach it:

### Given Information:
- **Accounts Receivable (end of year balance)**: $5,125,000
- **Allowance for Doubtful Accounts (current balance)**: Debit balance of $32,600
- **Sales for the year**: $105,550,000
- **Estimated Allowance for Doubtful Accounts (from aging method)**: $225,000

### Step-by-Step Solution:

1. **Identify the required balance** in the Allowance for Doubtful Accounts:
   - The estimated balance needed in the Allowance for Doubtful Accounts is $225,000 (based on the aging of accounts).

2. **Determine the current balance** of the Allowance for Doubtful Accounts:
   - The current balance is a **debit** of $32,600.

3. **Calculate the required adjustment**:
   - The goal is to adjust the Allowance for Doubtful Accounts from a debit balance of $32,600 to a credit balance of $225,000.
   - This means the total change required is the sum of these two amounts:
   
   \[
   \text{Required adjustment} = 225,000 + 32,600 = 257,600
   \]

### Conclusion:
The amount of the adjusting entry for uncollectible accounts is **$257,600**.

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Would you like to go into more detail on how this method works or ask any questions? Here are 5 related questions to consider:

1. What is the purpose of the Allowance for Doubtful Accounts?
2. How does the aging method work for estimating uncollectible accounts?
3. What happens if there’s a credit balance in the Allowance for Doubtful Accounts before the adjustment?
4. How is the adjusting entry recorded in the journal for uncollectible accounts?
5. Why is it important to track uncollectible accounts separately from Accounts Receivable?

### Tip:
The aging method categorizes receivables by how long they have been outstanding, and assigns higher estimated uncollectible rates to older receivables.

At the end of the current year, Accounts Receivable has a balance of $5,125,000; Allowance for Doubtful Accounts has a debit balance of $32,600; and sales for the year total $105,550,000. Using the aging method, the balance of Allowance for Doubtful Accounts is estimated as $225,000.

a. Determine the amount of the adjusting entry for uncollectible accounts.

Learn how to determine the adjusting entry for uncollectible accounts using the aging method. This example includes an accounts receivable balance of $5,125,000 and a required allowance for doubtful accounts of $225,000, with a step-by-step calculation. Suitable for accounting students.

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