At the beginning of 2018, Uptown Travel Company has the following account balances:
Accounts receivable $45,000 (Debit)
Allowance for Bad Debts $6000 (Credit)
During the year, credit sales were $850,000. Cash collected on credit sales was $770,000, and $17,000 was written off. Uptown uses the aging-of-receivables method to record bad debts expense. The amount estimated as uncollectible was $26,000. The amount of Bad Debts Expense for 2018 is _______
A) $37,000
B) $26,000
C) $11,000
D) $9000
A) $37,000
Explanation: Calculations: $26,000 + $17,000 - $6000 = $37,000.
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