The following data are from the company's records for 2013:

-Refer to the Ace Computing Company. The amount of bad debts expense recognized in the 2013 income statement will be:

Question

The following data are from the company's records for 2013:
 
-Refer to the Ace Computing Company. The amount of bad debts expense recognized in the 2013 income statement will be:

Quizplus · Accepted Answer

The amount of bad debts expense recognized can be found by subtracting the ending balance of the allowance for doubtful accounts account from the beginning balance, adding any write-offs during the year, and then subtracting the ending balance of the allowance account again. Based on the information provided, the calculation is as follows:
Beginning balance of allowance account = $2,642
Ending balance of allowance account = $3,294
Write-offs during the year = $600
Bad debts expense = beginning balance - ending balance + write-offs
Bad debts expense = $2,642 - $3,294 + $600
Bad debts expense = $652

The Following Data Are from the Company's Records for 2013