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

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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