The following information is available for Reagan Company: $\begin{array} { l }
\text {Allowance for doubtful accounts at December 31, 2006 }&\$8,00\
\text { Credit sales during 2007 }&400,000\
\text {Accounts receivable deemed worthless and written off during 2007 }&9,000\
\end{array}$
As a result of a review and aging of accounts receivable in early January 2008, however, it has been determined that an allowance for doubtful accounts of $5,500 is needed at December 31, 2007.What amount should Reagan record as "bad debt expense" for the year ended December 31, 2007?

Question

The following information is available for Reagan Company: $\begin{array} { l  }
 \text {Allowance for doubtful accounts at December 31, 2006 }&\$8,00\
 \text { Credit sales during 2007 }&400,000\
 \text {Accounts receivable deemed worthless and written off during 2007 }&9,000\
\end{array}$
 As a result of a review and aging of accounts receivable in early January 2008, however, it has been determined that an allowance for doubtful accounts of $5,500 is needed at December 31, 2007.What amount should Reagan record as "bad debt expense" for the year ended December 31, 2007?

Quizplus · Accepted Answer

The Answer of The following information is available for Reagan Company: $\begin{array} { l  }
 \text {Allowance for doubtful accounts at December 31, 2006 }&\$8,00\
 \text { Credit sales during 2007 }&400,000\
 \text {Accounts receivable deemed worthless and written off during 2007 }&9,000\
\end{array}$
 As a result of a review and aging of accounts receivable in early January 2008, however, it has been determined that an allowance for doubtful accounts of $5,500 is needed at December 31, 2007.What amount should Reagan record as "bad debt expense" for the year ended December 31, 2007?

The Following Information Is Available for Reagan Company As a Result of a Review and Aging of Accounts