At the beginning of 2015,Elixir Inc.has the following ledger balances: During the year,credit sales amounted to $800,000.Cash collected on credit sales amounted to $760,000 and $18,000 has been written off.At the end of the year,company adjusted for bad debts expense using the aging method.The amount estimated as uncollectible was $25,000.
-The ending balance in Bad Debts Expense would be ________.

Question

At the beginning of 2015,Elixir Inc.has the following ledger balances:  During the year,credit sales amounted to $800,000.Cash collected on credit sales amounted to $760,000 and $18,000 has been written off.At the end of the year,company adjusted for bad debts expense using the aging method.The amount estimated as uncollectible was $25,000.
-The ending balance in Bad Debts Expense would be ________.

Quizplus · Accepted Answer

The ending balance in Bad Debts Expense would be $38,000. This is because the beginning balance was $25,000, and $13,000 of bad debts were written off during the year.

At the Beginning of 2015,Elixir Inc