The 2013 annual report of oracle corporation included the following information relating to their allowance for doubtful accounts: balance in allowance at the beginning of the year $323 million, accounts written off during the year of $145 million, balance in allowance at the end of the year $296 million. what did oracle corporation report as bad debt expense for the year?
(a) $27 million
(b) $178 million
(c) $118 million
(d) $151 million
(e) none of the above

Oracle Corporation report as bad debt expense for the year: $118 million

Explanation:

allowance at the end of the year - allowance at the beginning of the year + accounts written off during the year = bad debt expense for the year

$296 million - $323 million + $145 million = $118 million

The accounts written off during the year increase the expense because they are uncollectible so there were removed from a receivable account in the general ledger. The way to do so is:

A credit to Accounts Receivable, and a debit to Allowance for Doubtful Accounts

answer; ///the above statement is (false) .

answer; competency based pay;