For the Years Ended October 31,2018 and 2017,Armour Under Inc

question 96

Essay

For the years ended October 31,2018 and 2017,Armour Under Inc reported credit balances in the Allowance for Doubtful Accounts of $4,514 and $3,583,respectively.It also reported that write-offs during the year ended October 31,2018,amounted to $7,273 (all numbers in thousands of dollars).Assuming no other changes in the account,what amount did Armour Under Inc.record as Bad Debt Expense for the period?

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Definitions:

Fair Value

The estimated price at which an asset can be bought or sold in a current transaction between willing parties, other than in a liquidation sale.

Capital Lease

A lease agreement where the lessee essentially becomes the owner of the asset for accounting purposes, often including an option to purchase at the lease's end.

Operating Lease

An operating lease is a lease agreement for the use of an asset where the lessee obtains rights to use the asset for a fraction of the asset's useful life without ownership transfer.

FASB

The Financial Accounting Standards Board is responsible for establishing accounting and financial reporting standards for companies and nonprofit organizations following Generally Accepted Accounting Principles (GAAP) in the United States.