Using the aging method,estimated uncollectible accounts are $3,000.If the balance of Allowance for Doubtful Accounts is $500 credit before adjustment,what is a Bad Debt Expense for the period?
A)$3,500
B)$2,500
C)$3,000
D)$500

Question

Quizplus · Accepted Answer

The Bad Debt Expense is calculated by adjusting the Allowance for Doubtful Accounts to the estimated uncollectible amount. Since the allowance already has a $500 credit balance, you need an additional $2,500 to reach the estimated $3,000.

Using the Aging Method,estimated Uncollectible Accounts Are $3,000