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The unadjusted trial balance at the end of the year includes the following: Accounts receivable $106,000 Allowance for doubtful accounts $1,800 Both accounts have normal balances. The company uses the aging of accounts receivable method. Its estimate of uncollectible receivables resulting from the aging analysis equals $7,000. What is the amount of Bad Debt Expense to be recorded for the year

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Answer:

$5,200

Explanation:

Calculation for the bad debt expense to be recorded for the year

Using this formula

Bad debt expense= Ending balance in allowance for doubtful accounts - Unadjusted allowance for doubtful accounts

Let plug in the formula

Bad debt expense= $ 7,000 - $ 1,800

Bad debt expense= $ 5,200

Therefore the amount of bad debt expense to be recorded for the year will beb $ 5,200

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