Question

Flyer Company has provided the following information for 2019: 1) The allowance for doubtful accounts balance at the beginning of the year was $4,000 (credit balance). 2) The allowance for doubtful accounts balance at the end of the year (after adjusting entries) was $3,500 (credit balance). 3) Accounts receivable written-off as uncollectible during 2019 amounted to $3,500. How much bad debt expense did Flyer Company record in 2019

Answer 1

Answer:

$4000

Explanation:

The allowance for doubtful accounts balance at the beginning of the year was $4,000 (credit balance)

The allowance for doubtful accounts balance at the end of the year (after adjusting entries) was $3,500 (credit balance)

$ 4000- $3500= $ 500  Bad Debts

Accounts receivable written-off as uncollectible during 2019 amounted to $3,500

Total Bad Debts = $ 500 + $ 3500= $ 4000

Answer 2

Answer:

$4000

Explanation:

The allowance for doubtful accounts at the beginning of the year - The allowance for doubtful accounts at the end of the year

$4,000- $3,500= $500

Therefore:

$ 500 Bad debt

Account receivable written off during 2019

$3,500

= $ 500 + $ 3500= $ 4000

Hence:

Total bad debt is $4,000