Use the information above to answer the following question.The unadjusted balance of the allowance for doubtful accounts of Johnstone Supplies,Inc. ,is a credit balance in the amount of $28,947 on July 31,2014.Based on the accounts receivable aging report,bad debt expense will be:
A)$34,012.
B)$5,065.
C)$62,959.
D)$50,434.

Question

Quizplus · Accepted Answer

The bad debt expense is calculated by subtracting the unadjusted credit balance of the allowance for doubtful accounts ($28,947) from the required allowance based on the aging report ($34,012), resulting in $5,065.

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