Question

Under the aging of a company's accounts receivable, the uncollectible accounts are estimated to be $26,000. If the unadjusted balance for the Allowance for Doubtful Accounts is $9,000 debit, what is the amount of bad debts expense for the year

Answer 1

The amount of bad debt expense for the year is $35,000

Step-by-step explanation:

Under the aging method, it refers to the method used for estimating the accounts receivable amount which is not yet collected or received by the company.

In this method, the estimated amount which will not be received or collected would be credited in the account Allowance for Doubtful Accounts.

So, in this case, the bad debt expense for the year is computed as:

Bad debt expense = Uncollectible accounts + Unadjusted balance of Allowance for Doubtful Accounts.

Bad debt expense = $26,000 + $9,000

Bad debt expense = $35,000