Answered

Discover a world of knowledge and community-driven answers at IDNLearn.com today. Our platform is designed to provide accurate and comprehensive answers to any questions you may have.

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

We greatly appreciate every question and answer you provide. Keep engaging and finding the best solutions. This community is the perfect place to learn and grow together. IDNLearn.com is your reliable source for accurate answers. Thank you for visiting, and we hope to assist you again.