Question

The beginning balance in the Allowance for Doubtful Accounts is $45629 cr.. During the year a...

The beginning balance in the Allowance for Doubtful Accounts is $45629 cr.. During the year a total of $39280 of accounts were written off and $3970 of accounts previously written off were recovered. The company estimates that the ending balance in the Allowance for Doubtful Accounts should be $66688. What is the bad debt expense for the year?

Select one:

a. $35310

b. $56369

c. $39280

d. $66688

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Homework Answers

Answer #1

Allowance for doubtful accounts, beginning = $45,629

Accounts receivable written off = $39,280

Accounts receivable written off, recovered = $3,970

Allowance for doubtful accounts, ending = $66,688

Allowance for doubtful accounts, existing = Allowance for doubtful accounts, beginning -Accounts receivable written off +Accounts receivable written off, recovered

= 45,629-39,280+3,970

= $10,319

Bad debt expense = Allowance for doubtful accounts, ending - Allowance for doubtful accounts, existing

= 66,688-10,319

= $56,369

The bad debt expense for the year $56369

Correct option is b.

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