Teeter Company began 2017 with accounts receivable of $400,000 and an allowance for uncollectible accounts of $20,000 (credit balance).Bad debt expense for the year was $33,000 and the ending balance in the allowance for uncollectible accounts account was $15,000.What was the amount of accounts receivable written off during the year?
A)$5,000
B)$38,000
C)$438,000
D)$405,000

Question

Quizplus · Accepted Answer

To find out the amount of accounts receivable written off during the year, we need to use the allowance method.

Beginning balance in allowance account = $20,000 (credit balance) 
Bad debt expense for the year = $33,000 
Ending balance in allowance account = $15,000 (credit balance)

Using these figures, we can calculate the uncollectible amount of accounts receivable as follows:

Uncollectible amount = Beginning balance in allowance account + Bad debt expense - Ending balance in allowance account 
Uncollectible amount = $20,000 + $33,000 - $15,000 = $38,000

Therefore, the answer is B. $38,000 is the amount of accounts receivable written off during the year.

Teeter Company Began 2017 with Accounts Receivable of $400,000 and an Allowance