Using the percentage-of-receivables method for recording bad debts expense, estimated uncollectible accounts are €23,000. If the...

Using the percentage-of-receivables method for recording bad debts expense, estimated uncollectible accounts are €23,000. If the balance of the Allowance for Doubtful Accounts is €2,000 credit before adjustment, what is the balance of the Allowance for Doubtful Accounts end of that period?

a. €2,000

b. €21,000

c. €23,000

d. €25,000

Solutions

Expert Solution

Balance to be maintained as Allowance for Doubtful Accounts

as per the percentage-of-receivables method for recording bad debts expense=

23000

so, the

balance of the Allowance for Doubtful Accounts at end of that period=

23000

Answer: c.--23000

ekkarill92 answered 2 years ago

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