Bert had accounts receivable of $300,000 and an allowance for doubtful accounts of $12,000 just before writing off as worthless an account receivable from Ernie Company of $1,500

Accounting Sep 11, 2020

Bert had accounts receivable of $300,000 and an allowance for doubtful accounts of $12,000 just before writing off as worthless an account receivable from Ernie Company of $1,500. After writing off this receivable what would be the balance in Bert's Allowance for Doubtful Accounts?
Multiple Choice (ID $12,000 credit balance. 0 $13,500 credit balance. 0 $10,500 credit balance. 0 $10,500 debit balance.

Expert Solution

Allowance for doubtful debt= Credit Balance in account before writing off bad debt- Bad debts write off

= 12000- 1500

= 10500

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