On Liberty's income statement for the year, what would bad debt expense amount to?
A) $6,500.
B) $6,300.
C) $6,400.
D) $5,200.

Question

Quizplus · Accepted Answer

The bad debt expense can be calculated by subtracting the ending balance of the Allowance for Doubtful Accounts account from its beginning balance. According to the information provided, the beginning and ending balances are $3,700 and $10,100, respectively. Therefore, the bad debt expense is $6,400 ($10,100 - $3,700 = $6,400).

On Liberty's Income Statement for the Year, What Would Bad