The data below is for Benton Corporation for 2016. $$\begin{array} { l r }
\text { Accounts Receivable-January 1, 2016 } & \$ 334,000 \
\text { Credit sales during 2016 } & 850,000 \
\text { Collections from credit customers during 2016 } & 725,000 \
\text { Customer accounts written off as uncollectible during 2016 } & 12,000 \
\text { Allowance for Doubtful Accounts [Credit B alance] } & \
\text { (After write-off of uncollectible accounts) } & 1,700 \
\text { Estimated uncollectible accounts based on an aging analysis } & 13,200
\end{array}$$

-Refer to the data for Benton Corporation. If the aging approach is used to estimate bad debts, what amount should be recorded as bad debt expense for 2016?
A) $ 2,900
B) $11,500
C) $23,500
D) $26,900

Question

The data below is for Benton Corporation for 2016. $$\begin{array} { l r } 
\text { Accounts Receivable-January 1, 2016 } & \$ 334,000 \
\text { Credit sales during 2016 } & 850,000 \
\text { Collections from credit customers during 2016 } & 725,000 \
\text { Customer accounts written off as uncollectible during 2016 } & 12,000 \
\text { Allowance for Doubtful Accounts [Credit B alance] } & \
\text { (After write-off of uncollectible accounts) } & 1,700 \
\text { Estimated uncollectible accounts based on an aging analysis } & 13,200
\end{array}$$ ​
​
-Refer to the data for Benton Corporation. If the aging approach is used to estimate bad debts, what amount should be recorded as bad debt expense for 2016?
A) $ 2,900
B) $11,500
C) $23,500
D) $26,900

Quizplus · Accepted Answer

The ending balance in the Allowance for Doubtful Accounts should be $13,200. The current balance after write-offs is $1,700. Therefore, the bad debt expense should be $13,200 - $1,700 = $11,500.

The Data Below Is for Benton Corporation for 2016 ​ ​ -Refer to the Data for Benton Corporation

The Data Below Is for Benton Corporation for 2016

-Refer to the Data for Benton Corporation