At the Beginning of the Year,a Company Had an Allowance

question 3

Short Answer

At the beginning of the year,a company had an Allowance for Uncollectible Accounts of $22,000.By the end of the year,actual bad debts total $24,000.What is the balance of the Allowance for Uncollectible Accounts after the write-offs (before any year-end adjustment)?

---

Definitions:

Fixed Costs

Business expenses that remain constant regardless of the level of production or sales activities.

Marginal Cost

The additional cost incurred by producing one more unit of a particular good or service.

Sunk Cost

Expenses that have already been incurred and cannot be recovered, which should not influence future business decisions.

Scrap Value

The estimated resale value of an asset after its useful life is over and it is deemed to no longer be usable for its intended purpose.