Your business uses the allowance method to account for uncollectible receivables. At the beginning of the year, Allowance for uncollectible accounts had a credit balance of $ 1 comma 000. During the year you wrote off bad receivables of $ 2 comma 400 and recorded Bad debt expense of $ 2 comma 300. What is your year-end balance in Allowance for uncollectible accounts?

Question

Business

Arielle Bradshaw

12 June, 18:46

Your business uses the allowance method to account for uncollectible receivables. At the beginning of the year, Allowance for uncollectible accounts had a credit balance of $ 1 comma 000. During the year you wrote off bad receivables of $ 2 comma 400 and recorded Bad debt expense of $ 2 comma 300. What is your year-end balance in Allowance for uncollectible accounts?

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Answers (1)

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Kamila Dominguez · Answer 1

Answer: 900

Explanation:

Answer is 900 because if we draw allowance ledger account in statement form i. e

Brought down allowance : 1000

Bad debt expense 2300

Written off receivables (2400)

Balance - year end 900