At the end of year 1, Boller Co. had an ending balance in allowance for uncollectible accounts of $30,000

 At the end of year 1, Boller Co. had an ending balance in allowance for uncollectible accounts of $30,000. During year 2, Boller wrote off $40,000 of accounts receivable. At the end of year 2, Boller had $300,000 in accounts receivable and determined that 8% of these would be uncollectible. What amount should be reported as uncollectible accounts expense on Boller's year 2 income statement?
$64,000
$34,000 Correct
$24,000
$14,000
 You Answered Correctly!
CORRECT! The easiest approach to solving this question is using a T-account for the allowance account and solve for the uncollectible (bad debt) expense.