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The Balances of the Allowance for Doubtful Accounts on the Balance

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Essay

The balances of the allowance for doubtful accounts on the balance sheets dated December 31 of 2010 and 2009 were $1,000 and $4,000, respectively. During 2010, bad debts expense was $9,000. What is the amount of accounts receivable that were written off as uncollectible during 2010?


Definitions:

Revenue Per Mile

A financial metric often used in transportation and delivery industries to measure the amount of income generated per mile of operation.

Profit Maximization

The technique used by firms to pinpoint the price and amount of production that results in the largest profit.

Speeding Ticket

A notice issued by law enforcement to a driver who has violated traffic speed regulations, typically requiring payment of a fine.

Revenue Per Mile

A financial metric used primarily in transportation and logistics to measure the amount of income generated for every mile of transportation.

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