Marconi Co.has the following information available for the current year: $\begin{array}{lr}
\text { Net Sales } & \$ 1,125,000 \
\text { Bad Debt Expense } & 90,000 \
\text { Accounts Receivable, Beginning of Year } & 180,000 \
\text { Accounts Receivable, End of Year } & 82,500 \
\text { Allowance For Doubtful Accounts, Beginning of Year } & 63,000 \
\text { Allowance For Doubtful Accounts, End of Year } & 93,000
\end{array}$ What was the amount of write-offs during the year?

Question

Quizplus · Accepted Answer

The amount of write-offs during the year can be calculated by adjusting the Allowance for Doubtful Accounts for the Bad Debt Expense and comparing the beginning and end of year balances. The calculation is as follows: Beginning Allowance for Doubtful Accounts ($63,000) + Bad Debt Expense ($90,000) - Write-offs = Ending Allowance for Doubtful Accounts ($93,000). Solving for write-offs gives us $60,000.

Marconi Co What Was the Amount of Write-Offs During the Year? A)$93,000

Marconi Co What Was the Amount of Write-Offs During the Year?
A)$93,000