On January 1,2017,Everlight Corp.has the following account balances:

Allowance for Bad Debts

During the year,Everlight has $150,000 of credit sales,collections of credit sales of $144,000,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 $2,100 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 $150,000 of credit sales,collections of credit sales of $144,000,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 $2,100 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

A)$3,400 - $1,200 = $2,200

On January 1,2017,Everlight Corp.has the Following Account Balances