Question

On December 31, 2021, Larry's Used Cars had balances in Accounts Receivable and Allowance for Uncollectible Accounts of $54,000 and $1,050, respectively. During 2022, Larry's wrote off $1,625 in accounts receivable and determined that there should be an allowance for uncollectible accounts of $5,700 at December 31, 2022. Bad debt expense for 2022 would be:

Answer 1

$6,275

Step-by-step explanation:

Allowance for Uncollectible-opening ($1,050)

Allowance for Uncollectible-closing $5,700

Allowance provided specially $1,625

Bad Debt Expense $6,275