Chapter 9, Problem 4QC

Brickman Company uses the allowance method to account for uncollectible receivables. At the beginning of the year, Allowance for Bed Debts had a credit balance of $1,000. During the year Brickman wrote off uncollectible receivables of $2,100. Brickman recorded Bad Debts Expense of $2,700. What is Brickman’s year-end balance in Allowance for Bad Debts?

Learning Objective 3

1. $1,600
2. $4,800
3. $3,700
4. $600