Mills Corporation's balance sheet included the following information:

If the Allowance account had a credit balance of $27,500 immediately before the year-end adjustment for bad debts and no accounts were written-off or allowed for during the year,what was the amount of Bad Debt Expense recognized during the year?
A) $65,000
B) $27,500
C) $32,500
D) $37,500

Question

Mills Corporation's balance sheet included the following information:

If the Allowance account had a credit balance of $27,500 immediately before the year-end adjustment for bad debts and no accounts were written-off or allowed for during the year,what was the amount of Bad Debt Expense recognized during the year?
A) $65,000 
B) $27,500 
C) $32,500 
D) $37,500

Quizplus · Accepted Answer

The Answer of Mills Corporation's balance sheet included the following information:

If the Allowance account had a credit balance of $27,500 immediately before the year-end adjustment for bad debts and no accounts were written-off or allowed for during the year,what was the amount of Bad Debt Expense recognized during the year?
A) $65,000 
B) $27,500 
C) $32,500 
D) $37,500

Mills Corporation's Balance Sheet Included the Following Information