Assuming the entry to record bad debt expense was $8,250, what is the balance in the allowance for doubtful accounts after this entry was made?
A) $6,850
B) $8,250
C) $9,650
D) $1,150

Question

Quizplus · Accepted Answer

The entry to record bad debt expense increases the allowance for doubtful accounts, so we need to add the $8,250 to the current balance in the allowance. The question does not provide us with the current balance, so we cannot calculate the exact answer. However, the only answer choice that is greater than $8,250 is C, which would be the correct answer if the current balance was $1,400. The other answer choices are either less than or equal to $8,250, which would not be possible if we added the $8,250 expense to the current balance.

Assuming the Entry to Record Bad Debt Expense Was $8,250