North Co.uses the aging of accounts receivable method.The following information comes from its accounting records:

What is the estimate of bad debt expense?
A) $5,000
B) $9.000
C) $14,000
D) $19,000

Question

North Co.uses the aging of accounts receivable method.The following information comes from its accounting records:

What is the estimate of bad debt expense?
A) $5,000 
B) $9.000 
C) $14,000 
D) $19,000

Quizplus · Accepted Answer

The estimate of bad debt expense is the credit balance in the allowance for doubtful accounts account, which is calculated as ($35,000 + $9,000 - $30,000) = $14,000. Therefore, the best choice is C.

North CoUses the Aging of Accounts Receivable Method