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25 March, 22:05

Your business uses the allowance method to account for uncollectible receivables. At the beginning of the year, Allowance for uncollectible accounts had a credit balance of $ 1 comma 000. During the year you wrote off bad receivables of $ 2 comma 400 and recorded Bad debt expense of $ 2 comma 300. What is your year-end balance in Allowance for uncollectible accounts?

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  1. 25 March, 22:28
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    Answer: 900

    Explanation:

    Answer is 900 because if we draw allowance ledger account in statement form i. e

    Brought down allowance : 1000

    Bad debt expense 2300

    Written off receivables (2400)

    Balance - year end 900
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