The balances of the allowance for doubtful accounts on the balance sheets dated December 31 of 2017 and 2016 were $2,000 and $7,000, respectively. During 2017, bad debt expense was $12,000. What is the amount of accounts receivable that were written off as uncollectible during 2017?
A)$22,000
B)$8,000
C)$17,000
D)$2,000

Question

Quizplus · Accepted Answer

The change in the allowance for doubtful accounts during 2017 can be calculated as follows:
Allowance for Doubtful Accounts (12/31/16) = $7,000
Add: Bad Debt Expense = $12,000
Less: Allowance for Doubtful Accounts (12/31/17) = $2,000
Change in Allowance for Doubtful Accounts = $17,000 (a credit balance)
Since the change in the allowance for doubtful accounts was a credit balance of $17,000, it means that $17,000 worth of accounts receivable were written off during 2017 as uncollectible.

The Balances of the Allowance for Doubtful Accounts on the Balance