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 debit before adjustment, what is the amount of bad debt expense for the period?

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Quizplus · Accepted Answer

The bad debt expense is calculated by adding the desired ending balance in the Allowance for Doubtful Accounts ($38,000) to the existing debit balance ($7,000), totaling $45,000. This adjustment ensures the allowance account reflects the estimated uncollectible accounts.

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