During the year, credit sales amounted to $800,000. cash collected on credit sales amounted to $760,000 and $18,000 has been written off. at the end of the year, company adjusted for bad debts expense using the aging method. the amount estimated as uncollectible was $25,000. the ending balance in bad debts expense would be:

Question

Business

Mckenzie Coffey

9 November, 15:11

During the year, credit sales amounted to $800,000. cash collected on credit sales amounted to $760,000 and $18,000 has been written off. at the end of the year, company adjusted for bad debts expense using the aging method. the amount estimated as uncollectible was $25,000. the ending balance in bad debts expense would be:

+5

Answers (1)

Know the Answer?

Whiskey · Answer 1

Bad debt is defined as a debt that is no longer collectible and therefore worthless to the creditor. In this case, the uncollectible is $25,000 therefore the answer to this problem is:

Ending balance in bad debts expense = $25,000