Answered

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The CHS Company has provided the following information: Accounts receivable written-off as uncollectible during the year amounted to $12,500. The accounts receivable balance at the beginning of the year was $250,000. The accounts receivable balance at the end of the year was $310,000. The allowance for doubtful accounts balance at the beginning of the year was $15,000. The allowance for doubtful accounts balance at the end of the year after the recording of bad debt expense was $13,900. Credit sales during the year totaled $950,000. How much was CHS Company's bad debt expense

Sagot :

abiolataiwo2015

Answer:

$11,400

Explanation:

Calculation to determine CHS Company's bad debt expense

Using this formula

Bad debt expense =Bad debt expense -(Allowance for doubtful accounts balance at the beginning of the year -Accounts receivable written-off as uncollectible during the year )

Let plug in the formula

Bad debt expense=$13,900-( $15,000-$12,500)

Bad debt expense=$13,900-$2,500

Bad debt expense=$11,400

Therefore CHS Company's bad debt expense is $11,400

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