Assume Zap industries reported the following adjusted accoun

Assume Zap industries reported the following adjusted account balances at year-end. 2019 2018 $1,610,20e $1,260,920 (84,000) (69,100) $1,526,200 $1,191,820 Receivable for Doubtful Accounts ounts teceivable, Net 40 e company recorded no write-offs or recoveries during 2019. What was the amount of Bad Debt Expense reported in 2019

Solution

Since the company recorded no write offs or recoveries during 2019, the Bad Debt Expense reported in 2019 is the difference between the Allowance for Doubtful Accounts i.e. $14,900 (84,000 - 69,100).

Under Allowance for Doubtful Accounts, the doubtful amounts are calculated estimation basis.

So, the Bad Debt Expense = 84,000 - 69,100 = $14,900