Constanza Company had a beginning and ending allowance for doubtful accounts balance of $23,000 and $27,000,respectively.If $12,000 of accounts were written off during the period,what was the uncollectible accounts expense?
A)$27,000
B)$16,000
C)$12,000
D)$ 4,000

Question

Quizplus · Accepted Answer

The uncollectible accounts expense can be calculated by adjusting the beginning allowance for doubtful accounts for the write-offs and the ending balance. The calculation is: $23,000 (beginning balance) + X (uncollectible accounts expense) - $12,000 (write-offs) = $27,000 (ending balance). Solving for X gives us $16,000 as the uncollectible accounts expense.

Constanza Company Had a Beginning and Ending Allowance for Doubtful