Reference no: EM132562743

Question - Castle Company provides estimates for its uncollectible accounts. The allowance for uncollectible accounts had a credit balance of $17,730 at the beginning of 2016 and a $23,310 credit balance at the end of 2016 (after adjusting entries). If the direct write-off method had been used to account for uncollectible accounts (bad debt expense equals actual write-offs), the income statement for 2016 would have included bad debt expense of $18,000 and revenue of $3,100 from the collection of previously written off bad debts.

Required - Determine bad debt expense for 2016 according to the allowance method.