Tinsel Co.’s balances in allowance for credit losses were $70,000 at the beginning of the current year and $55,000 at year end. During the year, receivables of $35,000 were written off as uncollectible. What amount should Tinsel report as credit loss expense at year end?

$50,000

Explanation:

Since Tinsel Co.’s balances in allowance for credit losses were $70,000 at the beginning of the current year and $55,000 at year end.

If during the year, receivables of $35,000 were written off as uncollectible, the amount that Tinsel should report as credit loss expense at year end is $50,000 and this is derived by

Opening balance 70,000

Add: Receivables written off .35,000

less: Closing balance (55,000)

= Amount of credit loss for the year - 50,000

$20,000

Explanation:

to determine the amount that Tinsel should report as bad debt expense (or credit loss expense), we must start with the beginning balance of allowance for doubtful accounts, and then we must subtract the account's ending balance and any bad debts write offs recorded during the year:

beginning account balance   $70,000

- ending account balance     ($50,000)

- write offs                              ($35,000)

total                                        ($20,000)

answer; risk transference;

answer; ///deficit;