A. $25,800. B. $54,300. C. $28,500. D. $2,700 The Soft Company has provided the

Question

A. $25,800.

B. $54,300.

C. $28,500.

D. $2,700

The Soft Company has provided the following information after year-end adjustments: • Allowance for doubtful accounts was $11,000 at the beginning of the year and $36,800 at the end of the year. • Accounts receivable were $86,800 at the beginning of the year and $437,000 at the end of the year. • Accounts written off as uncollectible totaled $28,500. • Net sales totaled $2,870,000. • Sales discounts were $117,000. How much was Soft’s bad debt expense for the year?

Explanation / Answer

Bad debts expense

Opening allowance + bad debts – written off = closing balance

11,000 + x – 28,500 = 36,800

So x    = $54,300

Option B

Bad debts expense

Opening allowance + bad debts – written off = closing balance

11,000 + x – 28,500 = 36,800

So x    = $54,300

Option B

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