May Co. prepared an aging of its accounts receivable at December 31, 2007 and determined that the net realizable value of the receivables was $300,000. Additional information is available as follows:

Allowance for uncollectible accounts at 1/1/07-credit balance:

$ 34,000

Accounts written off as uncollectible during 2007:

23,000

Accounts receivable at 12/31/07:

325,000

Uncollectible accounts recovered during 2007:

5,000

For the year ended December 31, 2007, May's bad debt expense would be

$25,000.

$23,000.

$16,000.

$9,000.

Question

Business

Trace Wagner

7 June, 13:16

May Co. prepared an aging of its accounts receivable at December 31, 2007 and determined that the net realizable value of the receivables was $300,000. Additional information is available as follows:

Allowance for uncollectible accounts at 1/1/07-credit balance:

$ 34,000

Accounts written off as uncollectible during 2007:

23,000

Accounts receivable at 12/31/07:

325,000

Uncollectible accounts recovered during 2007:

5,000

For the year ended December 31, 2007, May's bad debt expense would be

$25,000.

$23,000.

$16,000.

$9,000.

+1

Answers (1)

Know the Answer?

Cheyanne Holmes · Answer 1

Answer: $23,000

Explanation: May's bad debt expense for year 2007 is $23,000. this was the actual amount written off as uncollected for the year. Though a provision of $34,000 was made but this was just a provision. it was not the actual written off.