Allowance for Doubtful Accounts has a credit balance of $1,000 immediately before the write-off of a $300 account receivable.The credit balance of Allowance for Doubtful Accounts immediately after the write-off is
A) $700.
B) $1,000.
C) $1,300.
D) $300.

Question

Quizplus · Accepted Answer

Before the write-off, the credit balance of Allowance for Doubtful Accounts was $1,000. After the write-off of $300, the new balance in the Allowance for Doubtful Accounts is $700 ($1,000 - $300). Therefore, the correct answer is A.

Allowance for Doubtful Accounts Has a Credit Balance of $1,000