What is the amount of Bad Debt Expense for 2012?
A) $2,000
B) $5,050
C) $5,000
D) $4,950

Question

Quizplus · Accepted Answer

To calculate Bad Debt Expense for 2012, we need to subtract the ending balance of the Allowance for Doubtful Accounts ($11,050) from the beginning balance ($6,000) and add the Accounts Receivable written off during 2012 ($500). 
Bad Debt Expense = Beginning Balance - Ending Balance + Accounts Receivable written off = $6,000 - $11,050 + $500 = $5,050. 
Therefore, the answer is B.

What Is the Amount of Bad Debt Expense for 2012