The following information is related to December 31, 2016 balances. During 2017 sales on account were $390,000 and collections on account were $230,000. Also, during 2017 the company wrote off $22,000 in uncollectible accounts. An analysis of outstanding receivable accounts at year end indicated that bad debts should be estimated at $144,000. Bad debt expense for 2017 is:
A)$46,000.
B)$24,000.
C)$144,000.
D)$ 2,000.

Question

The following information is related to December 31, 2016 balances.  During 2017 sales on account were $390,000 and collections on account were $230,000. Also, during 2017 the company wrote off $22,000 in uncollectible accounts. An analysis of outstanding receivable accounts at year end indicated that bad debts should be estimated at $144,000. Bad debt expense for 2017 is:
A)$46,000. 
B)$24,000. 
C)$144,000. 
D)$ 2,000.

Quizplus · Accepted Answer

The Answer of The following information is related to December 31, 2016 balances.  During 2017 sales on account were $390,000 and collections on account were $230,000. Also, during 2017 the company wrote off $22,000 in uncollectible accounts. An analysis of outstanding receivable accounts at year end indicated that bad debts should be estimated at $144,000. Bad debt expense for 2017 is:
A)$46,000. 
B)$24,000. 
C)$144,000. 
D)$ 2,000.

The Following Information Is Related to December 31, 2016 Balances