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

A)$3,400 - $1,600 = $1,800

On January 1,2019,Triangle Corp.has the Following Account Balances