Profile Corporation
The following data concern Profile Corporation for 2012.
Accounts receivable --january 1, 2012$\quad\quad$ $\$250,000$
Credit sales during 2012 $\quad\quad$ $1,000,0000$
Collections from credit customers during 2012$\quad\quad$ 750,000
Allowance far bad debts-jaruary 1,2012 $\quad\quad$20,000
Eitimated uncollected accounts based on an aging aralysis$\quad\quad$ 45,000
- Refer to the information provided for Profile Corporation. If the aging method is used to estimate bad debts, what amount should be recorded as bad debt expense for 2012?

Question

Profile Corporation 
The following data concern Profile Corporation for 2012.
Accounts receivable --january 1, 2012$\quad\quad$  $\$250,000$
Credit sales during 2012 $\quad\quad$  $1,000,0000$
Collections from credit customers during 2012$\quad\quad$  750,000
Allowance far bad debts-jaruary 1,2012 $\quad\quad$20,000
Eitimated uncollected accounts based on an aging aralysis$\quad\quad$  45,000
- Refer to the information provided for Profile Corporation. If the aging method is used to estimate bad debts, what amount should be recorded as bad debt expense for 2012?

Quizplus · Accepted Answer

The estimated uncollectible accounts are $45,000. The allowance for bad debts at the beginning of the year was $20,000. Therefore, the bad debt expense for 2012 should be the difference: $45,000 - $20,000 = $25,000.

Profile Corporation the Following Data Concern Profile Corporation for 2012

Profile Corporation
the Following Data Concern Profile Corporation for 2012