Accounts receivable has a balance of $1,050,000 and the allowance for doubtful accounts has a balance of $7,400 at fiscal year-end prior to adjustment. If the estimate of uncollectible accounts determined by aging the receivables is $18,500, the amount of bad debt expense is:

Question

Quizplus · Accepted Answer

The bad debt expense is calculated as the difference between the estimated uncollectible accounts ($18,500) and the existing balance in the allowance for doubtful accounts ($7,400), which is $11,100.

Accounts Receivable Has a Balance of $1,050,000 and the Allowance