The Balances of the Allowance for Doubtful Accounts on the Balance

question 12

Short Answer

The balances of the allowance for doubtful accounts on the balance sheets dated December 31 of 2010 and 2009 were $2,000 and $7,000, respectively. During 2010, bad debts expense was $12,000. What is the amount of accounts receivable that were written off as uncollectible during 2010?
a. $22,000
b. $8,000
c. $17,000
d. $2,000

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Definitions:

Specialty

Signifies a particular area of expertise or a focus on a specific type of product or service that a business offers, distinguishing it from competitors.

Brand Loyalty

The tendency of consumers to continuously purchase one brand's products over another, often due to positive experiences and perceived value.

Shopping Product

Goods that consumers purchase and select after comparing quality, price, and style from several sellers, spending considerable effort in making decisions.

Specific Brands

Brands that are identified and differentiated by unique characteristics, appealing to particular segments of consumers.