During 20A,Thomas Company recorded bad debt expense of $15,000 and wrote off an uncollectible tradereceivable amounting to $5,000.Assuming a January 1,20A,credit balance in the allowance for doubtful accounts of $10,000,the December 31,20A,balance in the allowance account would be which of the following?
A)$5,000.
B)$15,000.
C)$20,000.
D)$25,000.

Question

Quizplus · Accepted Answer

The balance in the allowance for doubtful accounts on December 31, 20A can be calculated as follows:

Beginning balance on January 1, 20A = $10,000
Add: Bad debt expense for the year = $15,000
Less: Write-off of uncollectible account = $5,000

Therefore, the balance in the allowance for doubtful accounts on December 31, 20A would be $20,000 (Option C).

During 20A,Thomas Company Recorded Bad Debt Expense of $15,000 and Wrote