Schmaltz, Inc. records its allowance for doubtful accounts based on an analysis of receivables. The current, unadjusted balance in Schmaltz’s Allowance for Doubtful Accounts is a credit balance of $28,000. Based on a year-end aging of accounts receivables, Schmaltz determines that the allowance should be $98,000. What would be the journal entry to adjust the allowance?

Question

Schmaltz, Inc. records its allowance for doubtful accounts based on an analysis of receivables.  The current, unadjusted balance in Schmaltz’s Allowance for Doubtful Accounts is a credit balance of $28,000.  Based on a year-end aging of accounts receivables, Schmaltz determines that the allowance should be $98,000.  What would be the journal entry to adjust the allowance?