On January 1,2017,Everlight Corp.has the following account balances: Allowance for Bad Debts
During the year,Everlight has $155,000 of credit sales,collections of credit sales of $143,000,and write-offs of $3,300.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 $1,700 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 expense is ________.

Question

On January 1,2017,Everlight Corp.has the following account balances:  Allowance for Bad Debts
  During the year,Everlight has $155,000 of credit sales,collections of credit sales of $143,000,and write-offs of $3,300.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 $1,700 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 expense is ________.

Quizplus · Accepted Answer

$3,300 - $1,200 = $2,100