The following information is from the 2019 records of Fast Lane Racing Gear:

Bad debts expense is estimated by the aging-of-receivables method.Management estimates that $7,000 of accounts receivable will be uncollectible.Calculate the ending balance of Allowance for Bad Debts,after the adjustment for bad debts expense,at December 31,2019.

Question

The following information is from the 2019 records of Fast Lane Racing Gear:

Bad debts expense is estimated by the aging-of-receivables method.Management estimates that $7,000 of accounts receivable will be uncollectible.Calculate the ending balance of Allowance for Bad Debts,after the adjustment for bad debts expense,at December 31,2019.

Quizplus · Accepted Answer

D)Under the aging-of-receivables method,the Allowance for Bad Debts account is adjusted to the total amount estimated to be uncollectible.

The Following Information Is from the 2019 Records of Fast