The beginning balance in the allowance for uncollectible accounts of Pankhurst Corporation was $26,000.During the period,$17,000 of accounts receivable were written off.At the end of the period,Pankhurst estimates that $30,000 of its accounts receivable will be uncollectible.What amount of uncollectible accounts expense should the firm report?
A)$9,000
B)$17,000
C)$21,000
D)$30,000

Question

Quizplus · Accepted Answer

The uncollectible accounts expense for the period is equal to the change in the allowance for uncollectible accounts, which is the beginning balance plus the amount of accounts written off, minus the ending balance.

Beginning Balance = $26,000 
Accounts Written Off = $17,000 
Ending Balance = $30,000

Therefore, uncollectible accounts expense = $26,000 + $17,000 - $30,000 = $21,000.

Option C is the correct answer.

The Beginning Balance in the Allowance for Uncollectible Accounts of Pankhurst