The following information is related to December 31, 2021 balances. During 2022, sales on account were $390,000 and collections on account were $230,000.The company wrote off $22,000 in uncollectible accounts.An analysis of outstanding receivable accounts at year-end indicated that bad debts should be estimated at $144,000.Bad debt expense for 2022 is:
A)$46,000.
B)$24,000.
C)$144,000.
D)$ 2,000.

Question

The following information is related to December 31, 2021 balances.  During 2022, sales on account were $390,000 and collections on account were $230,000.The company wrote off $22,000 in uncollectible accounts.An analysis of outstanding receivable accounts at year-end indicated that bad debts should be estimated at $144,000.Bad debt expense for 2022 is:
A)$46,000. 
B)$24,000. 
C)$144,000. 
D)$ 2,000.

Quizplus · Accepted Answer

The Answer of The following information is related to December 31, 2021 balances.  During 2022, sales on account were $390,000 and collections on account were $230,000.The company wrote off $22,000 in uncollectible accounts.An analysis of outstanding receivable accounts at year-end indicated that bad debts should be estimated at $144,000.Bad debt expense for 2022 is:
A)$46,000. 
B)$24,000. 
C)$144,000. 
D)$ 2,000.

The Following Information Is Related to December 31, 2021 Balances