The balance of an allowance for doubtful debts was ($10 000) at the start of a year and ($16 000) at the end of that year. During the year, accounts totalling $9000 were written off as bad debts. What was the bad debts expense for the year?
A) $7000
B) $9000
C) $10 000
D) $15 000

Question

Quizplus · Accepted Answer

The bad debts expense for the year can be calculated by adding the increase in the allowance for doubtful debts to the amount of accounts written off. The allowance increased by $6,000 (from -$10,000 to -$16,000). Therefore, the bad debts expense is $6,000 (increase in allowance) + $9,000 (accounts written off) = $15,000.

The Balance of an Allowance for Doubtful Debts Was ($10