Using the allowance method the uncollectible accounts for the year is estimated to be $50000.If the balance for the Allowance for Doubtful Accounts is $9000 before adjustment what is the amount of bad debt expense for the period?
A)$9000
B)$41000
C)$50000
D)$59000

Question

Quizplus · Accepted Answer

The bad debt expense for the period is equal to the estimated uncollectible accounts minus the beginning balance of the allowance for doubtful accounts. Therefore, bad debt expense = $50,000 - $9,000 = $41,000. Hence, option B is the correct answer.

Using the Allowance Method the Uncollectible Accounts for the Year