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Booked Solid, Inc., has the following account balances at the end of the year before adjustments: Accounts Receivable $50,000

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Answer:

Uncollectible Accounts Receivable = Accounts Receivable * 6%
Uncollectible Accounts Receivable = $50,000 * 6%
Uncollectible Accounts Receivable = $3,000

Total Doubtful Accounts Expense = Uncollectible Accounts Receivable – Allowance for Doubtful Accounts
Total Doubtful Accounts Expense = $3,000 - $400
Total Doubtful Accounts Expense = $2,600

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