Assume a company estimated that its bad debt expense for 2014 should be $100 million, and established

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Assume a company estimated that its bad debt expense for 2014 should be $100 million, and established an allowance for bad debts of $100 million. What will be the effect of this estimate on the 2015 income if it turns out that the “correct” amount of bad debt expense for 2014 should have been:

A. $85 million B. $105 million C. $100 million

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