On December 31, 2009, Coolwear, Inc. had balances in its accounts receivable and allowance for uncollectible accounts of $48,400 and $0, respectively. No receivables were written off during the year. At the end of 2009, Coolwear estimated that $2,100 in receivables would not be collected. Bad debt expense for 2009 would be:

Question

Quizplus · Accepted Answer

Bad debt expense is the amount estimated to be uncollectible. Since Coolwear estimated $2,100 would not be collected, the bad debt expense for 2009 is $2,100.