On December 31,2012,Larry's Used Cars had balances in Accounts Receivable and Allowance for Uncollectible Accounts of $53,600 and $1,325,respectively.During 2013,Larry's wrote off $1,465 in accounts receivable and determined that there should be an allowance for uncollectible accounts of $1,280 at December 31,2013.Bad debt expense for 2013 would be:

Question

Quizplus · Accepted Answer

The bad debt expense for the year can be calculated using the following formula:

Beginning balance in allowance for uncollectible accounts + Bad debt expense - Amount of write-offs = Ending balance in allowance for uncollectible accounts

Using the information given in the question, we can plug in the values:

$1,325 (beginning balance) + Bad debt expense - $1,465 (write-offs) = $1,280 (desired ending balance)

Solving for bad debt expense, we get:

Bad debt expense = $1,420

Therefore, the answer is choice C, $1,420.

On December 31,2012,Larry's Used Cars Had Balances in Accounts Receivable