Answer:
Balance of allowance for doubtful accounts after Bad debt Expense is $2700
Explanation:
given data
Cash sales= $153,000
Credit sales = $453,000
Selling and administrative expenses = $113,000
Sales returns and allowances= $33,000
Gross profit = $493,000
Accounts receivable = $140,000
Sales discounts = $17,000
doubtful accounts credit balance = $1,500
solution
we know here Total Bad Debit = 3% of accounts receivable
that is Total Bad Debit = 0.03 × $140,000
Total Bad Debit = $4200
so here allowance for doubtful account credit balance = $1500
so
Balance of allowance for doubtful accounts after Bad debt Expense will be
Balance of allowance for doubtful accounts = $4200 - $1500
Balance of allowance for doubtful accounts = $2700
