What does "that" refer to in "...felt that of this amount"?
The July 31, 2013, unadjusted trial balance for Dress Right shows a balance in accounts receivable of $2,000. Assume that the company's management felt that of this amount, only $1,500 would ultimately be collected. An adjusting entry is required to decrease accounts receivable and increase bad debt expense by $500.

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There's a missing coma: 'the company's management felt that, of this amount, only $1,500 would ultimately be collected.'

Good luck!

Answer

I examined another sentence with the same structure: "Material was collected of all the great groups. Among the bryophytes were quite a number of hepatics."