Cachet Co.has the following information: No recoveries were recorded during the year.What was the amount of accounts written off during the year?

Question

Cachet Co.has the following information:  No recoveries were recorded during the year.What was the amount of accounts written off during the year?

Quizplus · Accepted Answer

Ending balance in Allowance for Doubtful Accounts = Beginning credit balance in Allowance for Doubtful Accounts + Bad debt expense − Write-offs + Recoveries
Write-offs = Beginning credit balance in Allowance for Doubtful Accounts + Bad debt expense + Recoveries − Ending balance in Allowance for Doubtful Accounts
= $4,000 + $8,000 + $0 − $3,000 = $9,000

Cachet CoHas the Following Information: No Recoveries Were Recorded During