Thatcher Company had a January 1, credit balance in its Allowance for Doubtful Accounts of
$4,000 for the current year. The following transactions and events affected the Allowance for Doubtful Accounts during the current year:
Apr 15 Bean's account receivable of $2,700 was deemed uncollectible.
July 1 Cho paid the full amount of a previously written-off account receivable. This receivable of
$1,300 had been written off in the prior year.
Dec 31 Bad debts expense of $4,500 was recorded.
What amount should appear in the allowance for doubtful accounts in the December 31, balance sheet for the current year?

Question

Quizplus · Accepted Answer

The Answer of Thatcher Company had a January 1, credit balance in its Allowance for Doubtful Accounts of
$4,000 for the current year. The following transactions and events affected the Allowance for Doubtful Accounts during the current year:
Apr 15 Bean's account receivable of $2,700 was deemed uncollectible.
July 1 Cho paid the full amount of a previously written-off account receivable. This receivable of
$1,300 had been written off in the prior year.
Dec 31 Bad debts expense of $4,500 was recorded.
What amount should appear in the allowance for doubtful accounts in the December 31, balance sheet for the current year?

Thatcher Company Had a January 1, Credit Balance in Its