Answer :
To determine the adjusting entry for the Allowance for Doubtful Accounts using the aging method, we need to calculate the required adjustment based on the given information:
1. **Current Allowance Balance (unadjusted)**: $8,000 (given)
2. **Desired Allowance Amount**: $30,000 (based on detailed review)
To find the required adjustment:
\[ \text{Adjustment Required} = \text{Desired Allowance} - \text{Current Allowance Balance} \]
\[ \text{Adjustment Required} = $30,000 - $8,000 \]
\[ \text{Adjustment Required} = $22,000 \]
Therefore, the adjusting entry on June 30 would involve a credit to the "Allowance for Uncollectible Accounts" of **$22,000**. This amount reflects the increase needed in the allowance to meet the desired amount of $30,000, considering the unadjusted balance of $8,000 already in place.
1. **Current Allowance Balance (unadjusted)**: $8,000 (given)
2. **Desired Allowance Amount**: $30,000 (based on detailed review)
To find the required adjustment:
\[ \text{Adjustment Required} = \text{Desired Allowance} - \text{Current Allowance Balance} \]
\[ \text{Adjustment Required} = $30,000 - $8,000 \]
\[ \text{Adjustment Required} = $22,000 \]
Therefore, the adjusting entry on June 30 would involve a credit to the "Allowance for Uncollectible Accounts" of **$22,000**. This amount reflects the increase needed in the allowance to meet the desired amount of $30,000, considering the unadjusted balance of $8,000 already in place.