The Soft Company has provided the following information after year-end adjustments: • Allowance for doubtful accounts was $11,000 at the beginning of the year and $30,000 at the end of the year.
• Accounts receivable were $80,000 at the beginning of the year and $420,000 at the end of the year.
• Accounts written off as uncollectible totaled $20,000.
• Net sales totaled $2,700,000.
• Sales discounts were $100,000.
How much was Soft's bad debt expense for the year?
A) $39,000.
B) $1,000.
C)$19,000.
D)$20,000.

Question

Quizplus · Accepted Answer

The bad debt expense can be calculated using the formula: Ending Allowance = Beginning Allowance + Bad Debt Expense - Write-offs. Plugging in the values: $30,000 = $11,000 + Bad Debt Expense - $20,000. Solving for Bad Debt Expense gives $39,000.

The Soft Company Has Provided the Following Information After Year-End