Using the allowance method, the uncollectible accounts for the year is estimated to be $50,000. If the balance for the Allowance for Doubtful Accounts is a $9,000 credit before adjustment, what is the amount of bad debt expense for the period?
A)$9,000
B)$41,000
C)$50,000
D)$59,000

Question

Quizplus · Accepted Answer

Bad debt expense for the period is calculated by adding the estimated uncollectible accounts to the existing credit balance in the Allowance for Doubtful Accounts:

$50,000 + (-$9,000) = $41,000

Therefore, the correct answer is B) $41,000.

Using the Allowance Method, the Uncollectible Accounts for the Year