At the beginning of the year the balance in the Allowance fo

At the beginning of the year, the balance in the Allowance for Doubtful Accounts is a credit of $698. During the year, $344 of previously written off accounts were reinstated and accounts totaling $899 are written off as uncollectible. The end of the year balance in the Allowance for Doubtful Accounts should be the one listed below.

Select the correct answer.

$143

$344

$899

$698

Solution

End of the year balance in the Allowance for Doubtful Accounts = 698+344-899= $143