Answered

IDNLearn.com offers a unique blend of expert answers and community-driven knowledge. Discover the information you need quickly and easily with our reliable and thorough Q&A platform.

The following information is available for Bonita Industries: Allowance for doubtful accounts at December 31, 2019 $23500 Credit sales during 2020 1280000 Accounts receivable deemed worthless and written off during 2020 28900 As a result of a review and aging of accounts receivable in early January 2021, it has been determined that an allowance for doubtful accounts of $16700 is needed at December 31, 2020. What amount should Bonita record as "bad debt expense" for the year ended December 31, 2020?

Sagot :

Ayokenny2001idn

Answer:

$22,100

Explanation:

With regards to the above, the calculation for bad debt expense is is given as;

= Bad debt expense balance required + bad debt written off from accounts receivables - Existing bad debt allowance balance

= $16,700 + $28,900 - $23,500

= $22,100

Therefore, bad debt expense for the year ended December 31, 2020 is $22,100

Your participation is crucial to us. Keep sharing your knowledge and experiences. Let's create a learning environment that is both enjoyable and beneficial. IDNLearn.com is your go-to source for dependable answers. Thank you for visiting, and we hope to assist you again.