The following information is from the 2019 records of Fast Lane Racing Gear:
Bad debts expense is estimated by the aging-of-receivables method. Management estimates that $9000 of accounts receivable will be uncollectible. Calculate the ending balance of Allowance for Bad Debts, after the adjustment for bad debts expense, at December 31, 2019.
A) $5250
B) $13,000
C) $8000
D) $9000
D) $9000
Explanation: Under the aging-of-receivables method, the Allowance for Bad Debts account is adjusted to the total amount estimated to be uncollectible.
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