Sudan Ltd.'s allowance for doubtful accounts was $85,000 at the end of 2013 and $105,000 at the end of 2012.For the year ended December 31, 2013, Sudan reported bad debt expense of $18,000 in its income statement.What amount did Sudan debit to allowance for doubtful accounts during 2013 to write off actual bad debts?
A)$38,000
B)$34,650
C)$20,000
D)$12,000

Question

Quizplus · Accepted Answer

Allowance for doubtful accounts increased by $20,000 ($105,000 - $85,000). This increase is due to two factors: bad debt expense of $18,000 and write-offs of actual bad debts. The write-offs of actual bad debts must have been $20,000 - $18,000 = $2,000.

Sudan Ltd'S Allowance for Doubtful Accounts Was $85,000 at the End