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Using its aging of accounts receivable, Age Old, Inc. estimates that $90,000 of its $4,000,000 of accounts receivable will be uncollectible. Prior to making its adjusting entry, the unadjusted Allowance for Doubtful Accounts has a credit balance of $1,000. After the adjustment, the:_____.a. Allowance for Doubtful Accounts will have a $90,000 credit balance.b. Bad Debt Expense will equal $90,000.c. Allowance for Doubtful Accounts will have an $89,000 credit balance. d. Allowance for Doubtful Accounts will have a $91,000 credit balance.

Respuesta :

Since Age Old, Inc. estimates that $90,000 of its $4,000,000 of accounts receivable will be uncollectible, this implies that, after the adjustment, a. the Allowance for Doubtful Accounts will have a $90,000 credit balance.

What is Aging of Accounts Receivable?

Aging of Accounts Receivable can be described as a technique of identifying open accounts receivables depending on the amount of time an invoice has been outstanding.

The importance of the aging of accounts receivables is its employment in ascertaining the allowance for doubtful accounts.

Since Age Old, Inc. estimates that $90,000 of its $4,000,000 of accounts receivable will be uncollectible, the implication of this in aging is that the desired ending credit balance of Allowance for Doubtful Accounts is $90,000.

Learn more about Aging of Accounts Receivable here: https://brainly.com/question/15991837.

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