Maradonna Co. uses an aging schedule of accounts receivable in estimating its bad debt expense. The total estimate, which appears on the aging schedule, will be equal to
A)the amount of bad debt expense on the company's income statement.
B)the debit balance required in the allowance account prior to the recognition of bad debt expense.
C)the increase in bad debt expense as a result of the estimate.
D)the credit balance required in the allowance account after the recognition of bad debt expense.

Question

Quizplus · Accepted Answer

The total estimate from the aging schedule represents the desired ending balance in the allowance for doubtful accounts, which is the credit balance required after recognizing bad debt expense.