Total doubtful accounts at the end of the year is estimated,using the aging of receivables method,to be $25,000.If the balance for the Allowance for Doubtful Accounts is a $7,000 debit before adjustment,what will be the amount of bad debts expense for the period?
A)$7,000.
B)$18,000.
C)$25,000.
D)$32,000.

Question

Quizplus · Accepted Answer

The bad debts expense for the period is calculated by adding the desired ending balance of the Allowance for Doubtful Accounts ($25,000) to the existing debit balance ($7,000), resulting in a total of $32,000 needed to adjust the account to the correct balance.

Total Doubtful Accounts at the End of the Year Is