Earl Company uses the accrual method of accounting. Here is a reconciliation of Earl's allowance for bad debts for the current year. $$\begin{array} { l l }
\text { Begirruing allowarce for bad debts } & \$ 950,000 \
\text { Actual write-offs of accourts receivable during the year } & ( 899,600 ) \
\text { Addition to allowarce } & \$ 845,000 \
\text { Erding allowarce for bad debts } & \$ \underline { 895,400 }
\end{array}$$ Which of the following statements is true?

Question

Earl Company uses the accrual method of accounting. Here is a reconciliation of Earl's allowance for bad debts for the current year. $$\begin{array} { l l } 
\text { Begirruing allowarce for bad debts } & \$ 950,000 \
\text { Actual write-offs of accourts receivable during the year } & ( 899,600 ) \
\text { Addition to allowarce } & \$ 845,000 \
\text { Erding allowarce for bad debts } & \$ \underline { 895,400 }
\end{array}$$ Which of the following statements is true?

Quizplus · Accepted Answer

The bad debt expense per books is the addition to the allowance, which is $845,000. The deduction for bad debts is the actual write-offs, which is $899,600.

Earl Company Uses the Accrual Method of Accounting Which of the Following Statements Is True? A) Bad Debt

Earl Company Uses the Accrual Method of Accounting Which of the Following Statements Is True?
A) Bad Debt