Question

Assume the company recorded no write-offs or recoveries during 2015. What was the amount of bad debt expense reported in 2015

Answer 1

Answer: $14,500

Step-by-step explanation:

I could not find the same question as some details are missing but I did find a similar one that you can reference from. Find it attached.

As the company recorded no write-offs or recoveries during the year, the bad debt expense will be the difference in the allowances made for bad debts over the 2 years.

Bad Debt expense = Allowance balance in 2016 - Allowance balance in 2015

= 80,000 - 65,500

= $14,500