Question

using the percentage of receivables method for recording bad debt expense, estimated uncollectible accounts are 14900, if the balance of the allowance for doubtful accounts is 19600 debit before adjustment, what is the amount of bad debt expense

Answer 1

Answer: Bad Debt expense= $34,500

Step-by-step explanation:

Bad debt expense is the account receivables that a business records amount that would not be received due to lack of payment by its customers.

Using the percentage of receivables method,

Estimated uncollectibles = $14,900

unAdjusted balance in Allowance account = $ 19,600 debit

Bad Debt expense = Estimated uncollectibles +Unadjusted balance of a debit = $14,900 + $19,600= $34,500

This amount of $34,500 will now be recorded through an adjusting entry, The Bad Debt expense will be debited.