The Allowance for Bad Debts Account Had a Balance of $8,500

question 34

Multiple Choice

The Allowance for Bad Debts account had a balance of $8,500 at the beginning of the year and $7,200 at the end of the year.During the year (including the year-end adjustment) , bad debts expense of $16,000 was recognized.The total amount of past-due accounts receivable that were written off as uncollectible during the year were:

• A)$14,700.
• B)$16,000.
• C)$17,300.
• D)$23,200.

---

Definitions:

Income Statement

An account that displays the earnings, costs, and overall profit of a business for a given period.

Margin Of Safety

The difference between actual sales and break-even sales, indicating the cushion a company has before it incurs a loss.

Contribution Format

A type of income statement where costs are divided into variable and fixed, highlighting the contribution margin.

Income Statement

A financial report detailing a company's incomes, costs, and net earnings during a defined timeframe.