Midway Company had a balance of $(500)in its allowance for uncollectible accounts.Aging of its accounts receivable revealed that the allowance should be $(1,400).The amount of bad debts expense for the period should be ________.

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The bad debts expense for the period is calculated by adjusting the existing allowance for uncollectible accounts to the newly determined required balance. The existing balance is $(500), and it needs to be increased to $(1,400). Therefore, the additional expense recognized is $(1,400) - $(500) = $900.

Midway Company Had a Balance of $(500)in Its Allowance for Uncollectible