Team Shirts had a balance of $(700)in its Allowance for uncollectible accounts.Aging of its accounts receivable revealed that the allowance should be $(1,250).The amount of bad debts expense for the period should be ________.

Question

Quizplus · Accepted Answer

The bad debts expense for the period is the amount needed to adjust the Allowance for Uncollectible Accounts from its current balance of $(700) to the desired balance of $(1,250). This requires an additional $(550) ($(1,250) - $(700)).

Team Shirts Had a Balance of $(700)in Its Allowance for Uncollectible