Question

Your business uses the allowance method to account for uncollectible receivables. At the beginning of the​ year, Allowance for uncollectible accounts had a credit balance of $ 1 comma 000. During the year you wrote off bad receivables of $ 2 comma 400 and recorded Bad debt expense of $ 2 comma 300. What is your​ year-end balance in Allowance for uncollectible​ accounts?

Answer 1

Answer: 900

Step-by-step explanation:

Answer is 900 because if we draw allowance ledger account in statement form i.e

Brought down allowance : 1000

Bad debt expense 2300

Written off receivables (2400)

Balance- year end 900