Using the percentage of receivables method for recording bad debts expense, estimated noncollectable are $25,000 at the end of the year. If the balance of the Allowance for Doubtful Accounts is $8,000 debit adjustment, what is the amount of bad debt expense for the period?
Bad Debt Expense:___________________© BrainMass Inc. brainmass.com June 4, 2020, 1:48 am ad1c9bdddf
Answer to your question is as follows.
Allowance for Doubtful Debts Account
(1) On percentage basis estimated uncollectible are $25000
Add: Allowance for Doubtful Accounts before adjustment,(Dr Balance) $8000
This solution provides calculations for bad debt expense.