Bert had accounts receivable of $280,000 and an allowance for doubtful accounts of $10,800 just before writing off as worthless an account receivable from Ernie Company of $1,600.After writing off this receivable what would be the balance in Bert's Allowance for Doubtful Accounts?
A)$10,800 credit balance.
B)$12,400 credit balance.
C)$9,200 credit balance.
D)$9,200 debit balance.

Question

Quizplus · Accepted Answer

The new balance in the allowance for doubtful accounts after the writeoff would be $12,400 ($10,800 + $1,600).

Bert Had Accounts Receivable of $280,000 and an Allowance for Doubtful