K Ltd reported beginning and ending balances in the Allowance for doubtful debts account of $723 000 and $904 000 respectively.It also reported that write-offs of bad debts amounted to $648 000.Assuming that no previously written-off accounts had been collected,what amount did K Ltd record as bad debt expense for the period?
A) $467 000
B) $648 000
C) $829 000
D) $904 000

Question

Quizplus · Accepted Answer

Bad debt expense for the period can be calculated as follows:

Beginning balance of Allowance for doubtful debts + Bad debt expense for the period - Write-offs of bad debts = Ending balance of Allowance for doubtful debts

$723,000 + Bad debt expense - $648,000 = $904,000

Therefore, Bad debt expense for the period = $904,000 - $723,000 + $648,000 = $829,000

Therefore, the correct choice is C ($829,000).

K Ltd Reported Beginning and Ending Balances in the Allowance