Rosco Works, Inc. estimated that $5,000 of the $98,000 balance in accounts receivable would be...
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Accounting
Rosco Works, Inc. estimated that $5,000 of the $98,000 balance in accounts receivable would be uncollectible. The allowance for doubtful accounts (ADA) already had a $400 credit balance at year-end. What adjustment to ADA is needed to ensure that accounts receivable is presented at the appropriate value on the balance sheet?
$5,400 debit
$400 debit
$4,600 credit
$5,000 credit
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