On January 1, 2019, Triangle Corp. has the following account balances: Allowance for Bad Debts
During the year, Triangle has $155,000 of credit sales, collections of credit sales of $142,000, and write-offs of $3,400. It records bad debts expense at the end of the year using the aging-of-receivables method. At the end of the year, the aging analysis shows that $2,000 is the estimate of uncollectible accounts. Before the year-end entry to adjust the bad debts expense is made, the balance in the Allowance for Bad Debts is ________.

Question

On January 1, 2019, Triangle Corp. has the following account balances:  Allowance for Bad Debts
  During the year, Triangle has $155,000 of credit sales, collections of credit sales of $142,000, and write-offs of $3,400. It records bad debts expense at the end of the year using the aging-of-receivables method. At the end of the year, the aging analysis shows that $2,000 is the estimate of uncollectible accounts. Before the year-end entry to adjust the bad debts expense is made, the balance in the Allowance for Bad Debts is ________.

Quizplus · Accepted Answer

The Answer of On January 1, 2019, Triangle Corp. has the following account balances:  Allowance for Bad Debts
  During the year, Triangle has $155,000 of credit sales, collections of credit sales of $142,000, and write-offs of $3,400. It records bad debts expense at the end of the year using the aging-of-receivables method. At the end of the year, the aging analysis shows that $2,000 is the estimate of uncollectible accounts. Before the year-end entry to adjust the bad debts expense is made, the balance in the Allowance for Bad Debts is ________.