At the end of the year, Breyer Associates had a credit balance in its allowance for uncollectible accounts of $12,000 before adjustment. The balance in Breyer's gross accounts receivable is $600,000. Breyer's management estimates that 10% of its accounts receivable balance will not be collected. What journal entry should Breyer record to adjust its allowance for uncollectible accounts

December 31, 202x, adjustment to allowance for doubtful accounts

Dr Bad debt expense 48,000

    Cr Allowance for doubtful accounts 48,000

Explanation:

total estimated bad debt = $600,000 x 10% = $60,000

allowance for doubtful accounts balance = $12,000

this account must be increased by $60,000 - $12,000 = $48,000

Allowance for doubtful accounts is a contra asset account that decreases the net balance of accounts receivable. In this case, the net balance of accounts receivable after the adjustment = $600,000 - $60,000 = $540,000

answer'; i believe the correct answer is (15,000) workers a year are treated for injuries caused by jacks, lifts or jack stands;