Karin-Jones Ltd. reported an opening balance of $1,712,000 in accounts receivable and of $147,000 in allowance for doubtful accounts for last year. During the year, sales on account were $2,500,000, collections of accounts receivable were $1,300,000, and bad debt expense was $89,000. At the end of the year, the company had a credit balance of $172,000 in the allowance for doubtful accounts. What amount of accounts receivable was written off during the year?

Question

Quizplus · Accepted Answer

The amount of accounts receivable written off can be calculated using the allowance for doubtful accounts. The opening balance was $147,000, bad debt expense was $89,000, and the ending balance was $172,000. Therefore, the write-offs during the year were $147,000 + $89,000 - $172,000 = $64,000.