Brook Logan, Inc. uses the balance sheet approach for estimating bad debt expense. At year end, accounts receivable was valued at $200,000 and the allowance for doubtful accounts had a credit balance of $300. The allowance for doubtful accounts is estimated at 1% of accounts receivable. What is the bad debt expense for the year?
A. $1,700
B. $2,000
C. $2,300
D. some other amount
Answer:A
Brook Logan, Inc. uses the balance sheet approach for estimating bad debt expense. At year end, accounts receivable was valued at $200,000 and the allowance for doubtful accounts had a credit balance of $300. The allowance for doubtful accounts is estimated at 1% of accounts receivable. What is the bad debt expense for the year?
A. $1,700 B. $2,000 C. $2,300 D. some other amount