Answer:
Ending Accounts Receivable = Services on Account - Amount Written Off - Collection of accounts receivables
= $250,000 - $10,000 - $210,000
= $30,000
Required Balance in Allowance for Un-collectible accounts at Year end = Accounts Receivable at 12/31/2021 * 20%
= $30,000 * 20%
= $6,000
Bad debt Expense = Required Balance in Allowance account + Amount written off
= $6,000 + $10,000
= $16,000
Journal Entries
Event General Journal Debit Credit
1 Allowance for doubtful accounts $10,000
To Accounts Receivable $10,000
2 Bad debt Expense $16,000
To Allowance for doubtful accounts $16,000