Upon completing an aging analysis of accounts receivable, the accountant for Rosco Works prepared an aging of accounts receivable and estimated that $6,700 of the $99,700 accounts receivable balance would be uncollectible. The allowance for doubtful accounts had a $570 debit balance at year-end prior to adjustment. What is the amount of bad debt expense?

-$7,270

Explanation:

Accounts receivable is the amount that is owed to the business by various parties that is due within a particular period.

In this instance there was an aging analysis done that estimated that $6,700 will be uncollectible. This will result in a bad debt expense of -$6,700.

Before now there was a balance of -$570 in allowance for doubtful accounts. Meaning there was a debit balance attributed to uncollected debt.

The total debt balance will now be -6,700-570 = -$7,270

$7,270

Explanation:

Allowance for doubtful accounts is a contra asset account. It has credit balance and need to be adjusted against the receivable account balance to show net receivable amount on the balance sheet.

As $6,700 of uncollectible accounts receivables are estimated, but allowance account has a debit balance of $570.

Bad Debt Expense for the year = Estimated uncollectible accounts receivables + Year end debit balance of Allowance for doubtful accounts

Bad Debt Expense for the year = $6,700 + $570

Bad Debt Expense for the year = $7,270

oof

explanation:

f

(i know i'm late but the answer's "things about yourself" because you want to list things you're capable of, why you want to open up the business, the amount of money you're putting into it,etc.) i'm guessing you take online school small business, the answers to the quizzes are all over quizlet. just look up your question and type quizlet after it and it'll pop up.