Bender Ltd uses the allowance method of accounting for bad and doubtful debts.Their accounts show:
Allowance for doubtful debts 1 July 2015 $10 200
Allowance for doubtful debts 30 June 2016 14 200
Bad & doubtful debts expense for the year 8 000
Calculate the amount of bad debts actually written off during the year.

Question

Quizplus · Accepted Answer

The allowance for doubtful debts increased by $4,000 (from $10,200 to $14,200). Since the bad and doubtful debts expense for the year was $8,000, the actual bad debts written off must be $8,000 - $4,000 = $4,000.

Bender Ltd Uses the Allowance Method of Accounting for Bad