The following information is available for Marigold Corp.: As a result of a revi

Question

The following information is available for Marigold Corp.:

As a result of a review and aging of accounts receivable in early January 2018, it has been determined that an allowance for doubtful accounts of $15100 is needed at December 31, 2017. What amount should Marigold record as "bad debt expense" for the year ended December 31, 2017?

Allowance for doubtful accounts at December 31, 2016 $25900 Credit sales during 2017 1120000 Accounts receivable deemed worthless and written off during 2017 25100

Explanation / Answer

$14,300.

the amount to be recorded as bad debt expenese :

$25,100

required allowance $15,100 add : written off during the month

$25,100

less: opening balance ($25,900) bad debt expense $14,300

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