Total doubtful accounts at the end of the year are estimated to be $25,000 based on an aging of accounts receivable.If the balance in the Allowance for Doubtful Accounts is a $7,000 debit before adjustment,what will be the amount of bad debt expense recorded for the period?
A)$7,000.
B)$18,000.
C)$25,000.
D)$32,000.

Question

Quizplus · Accepted Answer

The Allowance for Doubtful Accounts needs to be adjusted to a $25,000 credit balance. Since it currently has a $7,000 debit balance, the adjustment required is $25,000 + $7,000 = $32,000.

Total Doubtful Accounts at the End of the Year Are