The unadjusted trial balance at the end of the year includes the following: Accounts Receivable $98,000 Allowance for Doubtful A

Question

3 years ago

8

The unadjusted trial balance at the end of the year includes the following: Accounts Receivable $98,000 Allowance for Doubtful A

ccounts 1,000 Both accounts have normal balances. The company uses the aging of accounts receivable method. Its estimate of uncollectible receivables resulting from the aging analysis equals $5,800. What is the amount of Bad Debt Expense to be recorded for the year

Business

1 answer:

Step2247 [10] · Answer 1 · 2022-05-09T17:59:07+03:00

Answer:

$4,800

Explanation:

Data provided as per the question

Uncollectible receivables = $5,800

Allowance for Doubtful Accounts = $1,000

The computation of Bad Debt Expense is shown below:-

Estimated Uncollectible receivables - Allowance for doubtful accounts as per aging analysis

= $5,800 - $1,000

= $4,800

Therefore we assume credit balance for accounts for doubtful allowance.