On January 1, 2019, Triangle Company has the following account balances:



During the year, Triangle has $165,000 of credit sales, collections of credit sales of $143,000, and write-offs of $3000. It records bad debts expense at the end of the year using the aging-of-receivables method. At the end of the year, the aging analysis shows that $2100 is the estimate of uncollectible accounts. Before the year-end entry to adjust the bad debts expense is made, the balance in the Allowance for Bad Debts is ________.

A) a debit of $1700

B) a credit of $4300

C) a zero balance

D) a debit of $3000


A) a debit of $1700
Explanation: $3000 - $1300 = $1700

Business

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