Suppose that the balance of a company's Allowance for Uncollectible Accounts was $6,200 (credit)at the end of the year,prior to any adjustments.The company estimated that the total of uncollectible accounts in its accounts receivable was $44,300 at the end of the year.What amount of bad debt expense would appear in the company's year-end income statement?

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Quizplus · Accepted Answer

The bad debt expense is calculated as the difference between the estimated total of uncollectible accounts at year-end ($44,300) and the existing balance in the Allowance for Uncollectible Accounts ($6,200 credit). Thus, $44,300 - $6,200 = $38,100.

Suppose That the Balance of a Company's Allowance for Uncollectible