Net Accounts Receivable: Allowance for Doubtful Accounts

7. Receivables and Investments / Net Accounts Receivable: Allowance for Doubtful Accounts / Problem 8

Problem 8

A company has an allowance for doubtful accounts balance of \$7,000 and writes off \$3,000 of uncollectible accounts. What is the new balance in the allowance for doubtful accounts?

\$4,000

\$10,000

\$7,000

\$3,000