Assume Zap Industries reported the following adjusted account balances at year-end. Assume the company recorded no write-offs or recoveries during 2019.What was the amount of Bad Debt Expense reported in 2019?

Question

Assume Zap Industries reported the following adjusted account balances at year-end.  Assume the company recorded no write-offs or recoveries during 2019.What was the amount of Bad Debt Expense reported in 2019?

Quizplus · Accepted Answer

Ending balance in Allowance for Doubtful Accounts = Beginning credit balance in Allowance for Doubtful Accounts − Write-offs + Bad Debt Expense
Bad Debt Expense = Ending balance in Allowance for Doubtful Accounts − Beginning balance in Allowance for Doubtful Accounts + Write-offs
= $126,400 − $103,360 + $0 = $23,040

Assume Zap Industries Reported the Following Adjusted Account Balances at Year-End