At the beginning of 2019, Brown Company's allowance for doubtful accounts is $72,000. During 2019, $25,500 was written off as uncollectible. On December 31, 2019, Brown Company used an aging schedule of accounts receivable and determined that $63,180 of the accounts receivable would probably be uncollectible.
What would be the bad debts expense that should be reported on Brown Company's 2019 income statement?

Question

Quizplus · Accepted Answer

Year-end Allowance for Doubtful Accounts = $72,000 - $25,500 = $46,500
Bad Debt Expense = $63,180 - $46,500 = $16,680

At the Beginning of 2019, Brown Company's Allowance for Doubtful