Question

At the beginning of​ 2018, Uptown​ Travel, Inc. has the following account​ balances: Accounts receivable        $ 46 comma 000 ​(Debit) Allowance for Bad Debts   $ 5 comma 000 ​(Credit) During the​ year, credit sales were $ 850 comma 000. Cash collected on credit sales was $ 770 comma 000​, and $ 15 comma 000 was written off. Uptown uses the agingminusofminusreceivables method to record bad debts expense. The amount estimated as uncollectible was $ 29 comma 000. The amount of Bad Debts Expense for 2018 is​ ________.

Answer 1

$39,000

Step-by-step explanation:

The calculation of the bad debt expense is shown below:

= Amount estimated as uncollectible + written off amount - credit balance of allowance for bad debts

= $29,000 + $15,000 - $5,000

= $39,000

Basically we applied the above formula to find out the bad debt expense. Hence, all other information which is mentioned is irrelevant therefore, ignored it