Timmons Company had a January 1,credit balance in its Allowance for Doubtful Accounts of $7,000 for the current year.The following transactions and events affected the Allowance for Doubtful Accounts during the current year:
$$\begin{array} { | l | l | }
\hline \text { Apr. 15 } & \text { Bard's account receivable of } \$ 5,700 \text { was deemed uncollectible. } \
\hline \text { July } 1 & \begin{array} { l }
\text { Drake paid the full amount of a previously written-off account receivable. This } \
\text { receivable of } \$ 2,300 \text { had been written off in the prior year. }
\end{array} \
\hline \text { Dec. 31 } & \text { Bad debts expense of } \$ 7,500 \text { was recorded. } \
\hline
\end{array}$$
What amount should appear in the allowance for doubtful accounts in the December 31,balance sheet for the current year?

Question

Timmons Company had a January 1,credit balance in its Allowance for Doubtful Accounts of $7,000 for the current year.The following transactions and events affected the Allowance for Doubtful Accounts during the current year:
 $$\begin{array} { | l | l | } 
\hline \text { Apr. 15 } & \text { Bard's account receivable of } \$ 5,700 \text { was deemed uncollectible. } \
\hline \text { July } 1 & \begin{array} { l } 
\text { Drake paid the full amount of a previously written-off account receivable. This } \
\text { receivable of } \$ 2,300 \text { had been written off in the prior year. }
\end{array} \
\hline \text { Dec. 31 } & \text { Bad debts expense of } \$ 7,500 \text { was recorded. } \
\hline
\end{array}$$ 
What amount should appear in the allowance for doubtful accounts in the December 31,balance sheet for the current year?

Quizplus · Accepted Answer

The Answer of Timmons Company had a January 1,credit balance in its Allowance for Doubtful Accounts of $7,000 for the current year.The following transactions and events affected the Allowance for Doubtful Accounts during the current year:
 $$\begin{array} { | l | l | } 
\hline \text { Apr. 15 } & \text { Bard's account receivable of } \$ 5,700 \text { was deemed uncollectible. } \
\hline \text { July } 1 & \begin{array} { l } 
\text { Drake paid the full amount of a previously written-off account receivable. This } \
\text { receivable of } \$ 2,300 \text { had been written off in the prior year. }
\end{array} \
\hline \text { Dec. 31 } & \text { Bad debts expense of } \$ 7,500 \text { was recorded. } \
\hline
\end{array}$$ 
What amount should appear in the allowance for doubtful accounts in the December 31,balance sheet for the current year?

Timmons Company Had a January 1,credit Balance in Its Allowance