Question

For the year ended December 31, Beal Co. estimated its allowance for uncollectible accounts using the year-end aging of accounts receivable. The following data are available:Allowance for uncollectible accounts, 1/1 $42,000Uncollectible accounts written off, 11/30 46,000Estimated uncollectible accounts per aging, 12/31 52,000After year-end adjustment, the uncollectible accounts expense should beA. $56,000B. $48,000C. $46,000D. $52,000

Answer 1

The uncollectible accounts expense is $56,000

Explanation:

Allowance for Uncollectible Expense           $42,000                 balance on 1/1

11/3 uncollectable 46000 expense              $56,00         uncollectible expense

written off                                                                                 (balancing figure)

                                                                    (52,000 +46,000 - 42,000)

                                                                           =$52,000

                                                                       balance on 12 / 31