Using the percentage-of-receivables basis, the uncollectible accounts for the year are estimated to be $38,000.If the balance for the Allowance for Doubtful Accounts is a $7,000 credit before adjustment, what is the amount of bad debt expense for the period?

Question

Quizplus · Accepted Answer

The amount of bad debt expense for the period can be calculated by subtracting the current balance of the Allowance for Doubtful Accounts from the estimated uncollectible accounts for the year. Therefore, bad debt expense = $38,000 - $7,000 = $31,000.

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