Hall Co.'s allowance for uncollectible accounts had a credit balance of $24,000 at December 31, Year 1. During Year 2, Hall wrote off uncollectible accounts of $96,000. The aging of accounts receivable indicated that a $100,000 allowance for doubtful accounts was required at December 31, Year 2. What amount of uncollectible accounts expense should Hall report for Year 2?

A. $172,000

B. $120,000

C. $100,000

D. $96,000

Question

Tiffany Downs

Business

1 March, 02:00

Hall Co.'s allowance for uncollectible accounts had a credit balance of $24,000 at December 31, Year 1. During Year 2, Hall wrote off uncollectible accounts of $96,000. The aging of accounts receivable indicated that a $100,000 allowance for doubtful accounts was required at December 31, Year 2. What amount of uncollectible accounts expense should Hall report for Year 2?

A. $172,000

B. $120,000

C. $100,000

D. $96,000

+3

Answers (1)

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Volvo · Answer 1

=$172,000

Explanation:

Hall records:

The uncollectable account had a credit balance of $ 24,000.

A credit balance is a positive balance; there is money in the account.

Hall wrote off $ 96,000 in the year

new balance = $24,000 - $ 96,000

= ($ 72,000.00)

Allowance for doubtful accounts required $100,000.00

Amount of uncollectable expense for the year should be

Amount + (72,000) = 100,0000

Amount = 100,000+72000

=$172,000