Using the percentage-of-receivables basis the uncollectible accounts for the year is estimated to be $33000. If the balance for the Allowance for Doubtful Accounts is a $5000 debit before adjustment what is the amount of bad debt expense for the period?
A) $5000
B) $28000
C) $33000
D) $38000

Question

Quizplus · Accepted Answer

The bad debt expense is calculated by adding the estimated uncollectible accounts ($33,000) to the existing debit balance in the Allowance for Doubtful Accounts ($5,000), totaling $38,000.

Using the Percentage-Of-Receivables Basis the Uncollectible Accounts for the Year