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Using its aging of accounts receivable, Age Old, Inc. estimates that $90,000 of its $4,000,000 of accounts receivable will be uncollectible. Prior to making its adjusting entry, the unadjusted Allowance for Doubtful Accounts has a credit balance of $1,000. After the adjustment, Bad Debt Expense on the income statement will be ______ the Allowance for Doubtful Accounts on the balance sheet.

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michell96

The total of the Bad Debt Expense is $90,000

In finances, a Bad Debt Expense refers to money a company could not collect and therefore became an expense as it negatively affects the company's financial situation. The most common causes of a bad debt expense are:

  • The customers could not pay due to economic hardships.
  • The customers refused to pay.

Moreover, the bad debt expense is calculated by determining how much money is uncollectable. Based on this, the total of bad debt expense in this company is $ 90,000 because this is the money considered as uncollectable.

Learn more in: https://brainly.com/question/12198015

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