Davidoff Company reported net credit of $735,000 on account for the year encing

Question

Davidoff Company reported net credit of $735,000 on account for the year encing December 31, 2016. On January 1, 2016, the Alowance for Daubtful Accounts had a credit belance of $18,000. During 2018, $30,000 af uncollectible accounts receiveble were written off. Devidaff has experienced bud debt losses of 3·of credt seles in prior penods. Usin" the percent e of credit su es method whet is the edused belance in the Allowance for Doubtful Accounts tt December 31, 2016? e 3, 20160 O s0,050 O st0,500 O s22050 $34500

Explanation / Answer

Estimated bad debts expense 735,000*3% 22050 Adjusted balance in Allowance for Doubtful accounts opening 18,000 written off -30,000 -12,000 bad debts expense 22,050 Adjusted balance 10,050 answer $10,050

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