The following information is available for Sorensen Company: As a result of a review and aging of accounts receivable in early January 2012, however, it has been determined that an allowance for doubtful accounts of $7,500 is needed at December 31, 2011.What amount should Sorensen record as bad debt expense for the year ended December 31, 2011?

Question

The following information is available for Sorensen Company:  As a result of a review and aging of accounts receivable in early January 2012, however, it has been determined that an allowance for doubtful accounts of $7,500 is needed at December 31, 2011.What amount should Sorensen record as bad debt expense for the year ended December 31, 2011?

Quizplus · Accepted Answer

Sorensen Company determined that an allowance for doubtful accounts of $7,500 is needed at December 31, 2011. Therefore, the bad debt expense for the year ended December 31, 2011 is also $7,500.

The Following Information Is Available for Sorensen Company: as a Result