Team Shirts had a balance in its allowance for uncollectible accounts of $(200).Aging the accounts receivable showed that the allowance should be $(1,800).Bad debts expense should be ________.

Question

Quizplus · Accepted Answer

The required bad debts expense can be calculated as the difference between the required balance of the allowance for uncollectible accounts and the current balance. 
Required bad debts expense = Required allowance for uncollectible accounts - Current allowance for uncollectible accounts 
= $(1,800) - $(200) 
= $(1,600)

Therefore, the answer is B) $1,600

Team Shirts Had a Balance in Its Allowance for Uncollectible