Answer:
$7,786
Step-by-step explanation:
Calculation to determine what Bad debt expense for 2018 would be:
First step is to calculate the Estimated bad debts
Estimated bad debts= 0.04 × ($218,000 + $22,900)
Estimated bad debts=0.04*$240,900
Estimated bad debts=$9,636
Second step is to calculate the allowance
Allowance = $9,200 - $7,350
Allowance = $1,850
Now let calculate the Bad debt expense
Using this formula
Bad debt expense = Estimated bad debts - Allowance
Let plug in the formula
Bad debt expense =$9,636 -$1,850 Bad debt expense =$7,786
Therefore Bad debt expense for 2018 would be:$7,786