Answer: $8,300
Step-by-step explanation:
Clark Company estimates that the net realizable value of their Accounts Receivable is $178,000. This is while their Accounts Receivable balance on the same date is $190,600.
This would infer that out of $190,600, they only intend on recovering $178,000.
The difference in these figures will be the Allowance for Doubtful Accounts balance at the end of the year because that is the amount that they do not believe they'll receive.
= 190,600 - 178,000
= $12,600
When the year started, the Allowance Balance was $17,600. Uncollectible Amount written off was $13,300. This amount would be written off from this account which would supposedly leave the balance to be,
= 17,600 - 13,300
= $4,300
The balance on the Allowance account is supposed be $12,600 yet the amount written off brings it to $4,300. The bad debts Expense for the year therefore, is the difference between these 2 figures because it is the bad debt expense that was written off from the $12,600 to bring it to $4,300.
= 12,600 - 4,300
= $8,300
Clark's 2019 Bad Debt expense is $8,300