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pav-90 [236]
3 years ago
9

2. Using the allowance method, the uncollectible accounts for the year is estimated to be $28,000. If the balance for the Allowa

nce for Doubtful Accounts is a $7,000 credit before adjustment, what is the amount of bad debts expense for the period?a.$7,000b.$21,000c.$28,000d.$35,000
Business
1 answer:
Hoochie [10]3 years ago
8 0

Answer:

b. $21,000

Explanation:

The accounting treatment for uncollectable accounts under allowance method is: Bad debts expense Debit and Allowance for doubtful accounts credit.

In the Question carried forward balance of Allowance for Doubtful accounts is $7,000 and the current year's allowance for doubtful accounts in total is $28,000.

So the amount for of bad debts expense for the period would be:

<h3>$28,000 - $7,000 = $21,000</h3>
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