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On December 31, 2015, Coolwear Inc. had balances in Accounts Receivable and Allowance for Uncollectible Accounts of $48,400 and $940, respectively. During 2016, Coolwear wrote off $820 in accounts receivable and determined that there should be an allowance for uncollectible accounts of $1,140 at December 31, 2016. Bad debt expense for 2016 would be:-$320-$1140-$820-$1020

Respuesta :

Ritmeks

Answer:

$1,020

Explanation:

Coolwear Inc. had a balance of $48,400 in account receivables and also a balance of $940 in the uncollectible account on December 31, 2015.

During the year 2016 Coolwear Inc. wrote of $820 in account receivable and had an allowance of $1,140 for the uncollectible account at December 31, 2016

The bad debt expense for the year 2016 can be calculated as follows

Bad debt expense=$1,140-($940-$820)

= $1,140-$120

= $1,020

Hence the bad debt expense for 2016 is $1,020

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