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Problem - Neal Company had the following information in 2014.
Accounts receivable 12/31/14 $11,000
Allowance for uncollectible account 12/31/14 $750 (before adjustment)
Credit sales during 2014 $43,000
Cash sales during 2014 $13,000
Collections from customers on account during 2014 $45,000
If uncollectible accounts are determined by the aging-of-receivales to be $970, the uncollectible-account expense for 2014 would be $20. Find the balance of the Allowance account after the adjusting entry?
A. $20
B. $1920
C. $950
D. $970
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