A company has a $10,000 credit balance in its Allowance for Doubtful Accounts

date:2026-01-01 16:02:18 author:admin browse: time View comments Add Collection

A company has a $10,000 credit balance in its Allowance for Doubtful Accounts

A company has a $10,000 credit balance in its Allowance for Doubtful Accounts. After writing off $5,000 in bad debts, the allowance balance is:

A. $0

B. $5,000

C. $10,000

D. $15,000

Answer: B

Explanation: Write-off: Debit Allowance $5,000, Credit Accounts Receivable $5,000. New allowance balance = $10,000 – $5,000 = $5,000.