Question

Hall Co.’s allowance for uncollectible accounts had a credit balance of $24,000 at December 31, Year 1. During Year 2, Hall wrote off uncollectible accounts of $96,000. The aging of accounts receivable indicated that a $100,000 allowance for doubtful accounts was required at December 31, Year 2. What amount of uncollectible accounts expense should Hall report for Year 2?
A. $172,000
B. $120,000
C. $100,000
D. $96,000

Answer 1

Answer:

=$172,000

Explanation:

Hall records:

The uncollectable account had a  credit balance of $ 24,000.

A credit balance is a positive balance; there is money in the account.

Hall wrote off $ 96,000 in the year

new balance = $24,000- $ 96,000

    =($ 72,000.00)

Allowance for doubtful accounts required $100,000.00

Amount of uncollectable expense for the year should be

Amount +(72,000)= 100,0000

Amount =100,000+72000

 =$172,000