Upon completing an aging analysis of accounts receivable,the accountant for Rosco Works aged the accounts receivable and estimated that $5,000 of the $98,000 accounts receivable balance would be uncollectible.The allowance for doubtful accounts had a $400 debit balance at year-end prior to adjustment.How much is bad debt expense?

Question

Quizplus · Accepted Answer

Bad debt expense ($5,400) = Allowance for doubtful accounts desired credit balance ($5,000) + Allowance for doubtful accounts current debit balance ($400).

Upon Completing an Aging Analysis of Accounts Receivable,the Accountant for Rosco