Using the allowance method, the uncollectible accounts for the year is estimated to be $50,000. If the balance for the Allowance for Doubtful Accounts is a $9,000 debit before adjustment, what is the amount of bad debt expense for the period?
A)$9,000
B)$41,000
C)$50,000
D)$59,000

Question

Quizplus · Accepted Answer

The bad debt expense is calculated by adjusting the Allowance for Doubtful Accounts to the estimated uncollectible amount. Since the allowance account has a $9,000 debit balance, you need to add $59,000 to reach the $50,000 credit balance (estimated uncollectible accounts), resulting in a $59,000 bad debt expense.

Using the Allowance Method, the Uncollectible Accounts for the Year