Question

Sanders Company has a debit balance of $7,000 in its Allowance for Doubtful Accounts before any adjustments are made. Based on a review of its accounts receivable at the end of the year, Sanders estimates that $70,000 of its receivables are uncollectible. The amount of bad debt expense which should be reported for the year is $70,000. $7,000. $77,000. $63,000. $70,000.

Answer 1

Answer:

$77,000

Explanation:

Calculation to determine what The amount of bad debt expense which should be reported for the year is

Using this formula

Bad debt expense=Allowance for Doubtful Accounts debit balance +Estimated uncollectible receivables

Let plug in the formula

Bad debt expense=$7,000+$70,000

Bad debt expense=$77,000

Therefore The amount of bad debt expense which should be reported for the year is $77,000