On January 1,2019,Triangle Company has the following account balances: Allowance for Bad Debts
During the year,Triangle has $165,000 of credit sales,collections of credit sales of $143,000,and write-offs of $3000.It records bad debts expense at the end of the year using the aging-of-receivables method.At the end of the year,the aging analysis shows that $2100 is the estimate of uncollectible accounts.Before the year-end entry to adjust the bad debts expense is made,the balance in the Allowance for Bad Debts is ________.
A) a debit of $1700
B) a credit of $4300
C) a zero balance
D) a debit of $3000

Question

On January 1,2019,Triangle Company has the following account balances:  Allowance for Bad Debts
  During the year,Triangle has $165,000 of credit sales,collections of credit sales of $143,000,and write-offs of $3000.It records bad debts expense at the end of the year using the aging-of-receivables method.At the end of the year,the aging analysis shows that $2100 is the estimate of uncollectible accounts.Before the year-end entry to adjust the bad debts expense is made,the balance in the Allowance for Bad Debts is ________.
A) a debit of $1700 
B) a credit of $4300 
C) a zero balance 
D) a debit of $3000

Quizplus · Accepted Answer

$3000 - $1300 = $1700

On January 1,2019,Triangle Company Has the Following Account Balances