Friedman Company uses the aging of accounts receivable method.Its estimate of uncollectible receivables resulting from the aging analysis equals $25,000.The unadjusted credit balance in the Allowance for Doubtful Accounts account is $8,000.What is the estimated Bad Debt Expense for the period?
A) $8,000
B) $17,000
C) $25,000
D) $33,000

Question

Quizplus · Accepted Answer

The estimated Bad Debt Expense for the period is calculated by subtracting the current credit balance of the Allowance for Doubtful Accounts account from the estimated uncollectible receivables. Therefore, the estimated Bad Debt Expense for the period would be $17,000 ($25,000 - $8,000).

Friedman Company Uses the Aging of Accounts Receivable Method