Bender Ltd uses the allowance method of accounting for bad and doubtful debts.Their accounts show: $\begin{array}{lr}
\text { Allow ance for doubtful debts 1 July } 2013 & \$ 10200 \
\text { Allow ance for doubtful debts 30 June 2014 } & 14200 \
\text { Bad \& doubtful debts expense for the year } & 8000
\end{array}$ Calculate the amount of bad debts actually written off during the year.

Question

Quizplus · Accepted Answer

The allowance for doubtful debts increased by $4,000 (from $10,200 to $14,200), and the bad & doubtful debts expense was $8,000. Therefore, the bad debts written off during the year is $8,000 - $4,000 = $4,000.

Bender Ltd Uses the Allowance Method of Accounting for Bad