Question

thompson corparations unadjusted trial balance includes the following balances assume normal balance accounts reciavable 1,865,000 allowance for doubtfull accounts 35,000 bad debts are estimated to be 6% of outstadning recievables what amount of bad debt expense will the company record

Answer 1

Answer: $76900

Step-by-step explanation:

The following information can be deduced from the question:

Accounts receivable = $1,865,000

Allowance for doubtful debts = $35000

Estimated bad debt = 6% × $1,865,000 = $111900

The amount of bad debt expense that the company will record will be:

= Estimated bad debt - Allowance for doubtful debts

= $111900 - $35000

= $76900