On 1/1/14, Frank Lucas Inc. had a normal balance in the Allowance for Doubtful Accounts...
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Accounting
On 1/1/14, Frank Lucas Inc. had a normal balance in the Allowance for Doubtful Accounts of $25,000. During 2014, it wrote off $18,000 of accounts and collected $5,250 on accounts previously written off. The balance in Accounts Receivable was $500,000 at 1/1 and $600,000 at 12/31. At 12/31/14, Frank Lucas Inc.prepared an aging schedule to determine the appropriate amount for the Bad Debt Expense accrual entry. What should Frank Lucas Inc. report as the balance of the Allowance for Doubtful Accounts at 12/31/14?
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