On December 31 of the current year, a company's unadjusted trial balance included the following: Accounts Receivable, balance of $97,250; Allowance for Uncollectible Accounts, credit balance of $951. What amount should be debited to Bad Debt Expense, assuming 6% of accounts receivable at the end of the current year will be uncollectible?

Respuesta :

Answer:

$4,884

Explanation:

Desired balance in allowance account: $97,250 x 0.06 =$5,835 credit

Current balance in allowance account -951 credit

($5,835- $951)= $4,884

Required amount of Bad Debts Expense:

$4,884 credit

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