Question

An aging of a company's accounts receivable indicates that estimate of the uncollectible accounts totals $4,455. If Allowance for Doubtful Accounts has a $1,116 credit balance, the adjustment to record the bad debt expense for the period will require a

Answer 1

Answer: Debit to bad debt expense for $3,339

Explanation:

Given:

uncollectible accounts = $4,455

Allowance for Doubtful Accounts = $1,116 credit balance

Adjustment for Bad debts for the period= Total estimated uncollectible receivable - credit balance  in allowance account

= $4,4,55- $1,116

= $3,339

Ans= Debit to bad debt expense for $3,339