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22 January, 23:48

Upon completing an aging analysis of accounts receivable, the accountant for Rosco Works prepared an aging of accounts receivable and estimated that $6,700 of the $99,700 accounts receivable balance would be uncollectible. The allowance for doubtful accounts had a $570 debit balance at year-end prior to adjustment. What is the amount of bad debt expense?

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  1. 23 January, 03:02
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    -$7,270

    Explanation:

    Accounts receivable is the amount that is owed to the business by various parties that is due within a particular period.

    In this instance there was an aging analysis done that estimated that $6,700 will be uncollectible. This will result in a bad debt expense of - $6,700.

    Before now there was a balance of - $570 in allowance for doubtful accounts. Meaning there was a debit balance attributed to uncollected debt.

    The total debt balance will now be - 6,700-570 = - $7,270
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