28. After aging Accounts Receivable, Z Company estimates uncollectible for 2015 to be $4,000. The balance in the allowance account at January 1, 2015 was a $300 credit. During the year, Z Co. wrote off $400 of accounts receivable. The debit to bad debts expense for 2015 would be for what amount

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Jonathon

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28. After aging Accounts Receivable, Z Company estimates uncollectible for 2015 to be $4,000. The balance in the allowance account at January 1, 2015 was a $300 credit. During the year, Z Co. wrote off $400 of accounts receivable. The debit to bad debts expense for 2015 would be for what amount

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Tony George · Answer 1

The debit to bad debts expense for 2015 would be: $4,100

Explanation:

Z Company uses the accounts receivable aging method to estimates uncollectible and the amount of estimated uncollectible for 2015 was $4,000.

The balance in the allowance account at January 1, 2015 was a $300 credit and Z Co. wrote off $400 of accounts receivable during the year.

Therefore, before adjusment, on 31 December 2015, the balance in the allowance account was a $100 debit.

Bad debts expense for 2015 = $4,000 + $100 = $4,100