Mills Corporation's balance sheet included the following information: $$\begin{array} { l r }
\text { Accourts Receivable } & \$ 500,000 \
\text { Less: Allowarce for Doubtful Accourts } & 65,000 \
\text { Accounts Receivable, Net of Allowarce } & \$ 35,000
\end{array}$$ 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?

Question

Mills Corporation's balance sheet included the following information: $$\begin{array} { l r } 
\text { Accourts Receivable } & \$ 500,000 \
\text { Less: Allowarce for Doubtful Accourts } & 65,000 \
\text { Accounts Receivable, Net of Allowarce } & \$ 35,000
\end{array}$$ 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?

Quizplus · Accepted Answer

The Answer of Mills Corporation's balance sheet included the following information: $$\begin{array} { l r } 
\text { Accourts Receivable } & \$ 500,000 \
\text { Less: Allowarce for Doubtful Accourts } & 65,000 \
\text { Accounts Receivable, Net of Allowarce } & \$ 35,000
\end{array}$$ 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?

Mills Corporation's Balance Sheet Included the Following Information If the Allowance Account Had a Credit Balance of $27,500