Answer:
The journal entry showing the adjustment is shown as:
Dr bad debt expense $3287
Cr Allowance for uncollectible accounts $3287
Explanation:
The company estimate of uncollectible account this year is calculated by multiplying the percentage of uncollectible accounts by the balance in the accounts receivable.
Hence,estimate of uncollectible account is 9%*$27,300=$2457
The estimate of $2457 implies that the balance in the allowance for uncollectible accounts should be $2457 credit balance as at the end of the year.
In order to achieve that ,reverse the debit balance of $830 in the account by posting a credit of $830,that takes the account to nil,then post a new allowance for uncollectible accounts($2457 credit entry)
Without mincing words, the adjusting entries passed is the sum of the two credit entries of $3287