Flyer prepares an aging of accounts receivable and the result shows that 4% of accounts receivable is estimated to be uncollectible. What is the balance in the allowance for doubtful accounts after bad debt expense is recorded?

The balance in allowance for doubtful accounts after bad debt expense is recorded is any existing balance in the allowance for doubtful accounts plus the bad debt expense.

Explanation: The question is not complete but balance in allowance for doubtful accounts can arrived at by constructing a movement schedule as follows:

Opening balance                                           $XXX

Addition (Bad debt expense)                         XXX

Write-off                                                           (XXX)

Balance at end of the period/year               XXX

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