The current year's beginning and ending balances for Allowance for Uncollectible Accounts is $23,000 and $27,000,respectively.If the amount of Bad Debt Expense for the year is $18,000,what is the amount of actual bad debts for the year?

Question

Quizplus · Accepted Answer

The change in the allowance account is $4,000 ($27,000 - $23,000). Since Bad Debt Expense is $18,000, the actual write-offs must be $14,000 ($18,000 - $4,000).

The Current Year's Beginning and Ending Balances for Allowance for Uncollectible