Question

Using the percentage of receivables method for recording bad debts expense, estimated uncollectible accounts are $10,000. if the balance of the allowance for doubtful accounts is $2,000 credit before adjustment, what is the amount of bad debt expense for that period?

Answer 1

The bad debt expense = Estimated noncollectable - allowance for doubtful accounts

The bade debt expense for that period = 10,000-2,000 = $8,000