contestada

Upon completing an aging analysis of accounts receivable, the accountant for Rosco Works prepared and aging of accounts receivable and estimated that $5,400 of the $98,400 accounts receivable balance would be uncollectible. The allowance for doubtful accounts had a $440 debit balance at year-end prior to adjustment. What is the amount of bad debt expense?

Respuesta :

abiolataiwo2015

Answer:

$5,440

Explanation:

Calculation for the amount of bad debt expense

Using this formula

Bad debt expense= Credit balance Allowance for doubtful accounts + Debit balance Allowance for doubtful accounts

Let plug in the formula

Bad debt expense=$5,000+$440

Bad debt expense=$5,440

Therefore Bad debt expense amount will be $5,440

Otras preguntas