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Rite-Aid uses the allowance method to account for uncollectible receivables. At the beginning of the year, Allowance for Bad Debts had a credit balance of
Rite-Aid uses the allowance method to account for uncollectible receivables. At the beginning of the year, Allowance for Bad Debts had a credit balance of $2,000. During the year, the company wrote off uncollectible receivables of $4,200. Rite-Aid also recorded an adjusting entry for $4,000 of bad debts expense for the current year. What is the company's year-end balance in Allowance for Bad Debts?
$10,200
$6,200
$2,200
$1,800
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