Question

The Allowance for Bad Debts account had a balance of $7,300 at the beginning of the year and $10,100 at the end of the year. During the year (including the year-end adjustment), bad debts expense of $13,400 was recognized. Required: Calculate the total amount of past-due accounts receivable that were written off as uncollectible during the year. (Hint: Make a T-account for the Allowance for Bad Debts account, plug in the amounts that you know, and solve for the missing amount.)

Answer 1

Answer:

Allowance for Bad Debts  

Debit -   Credit  

$ 10,600 -    $ 7,300  

         -   $ 13,400  

$ 10,600 -    $ 20,700 = 10,100

Explanation:

Balance at the Begining    

Allowance for Bad Debts   $ 7,300

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Bad debt expense  $ 13,400  

Allowance for Bad Debts   $ 13,400

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Allowance for Bad Debts  $ 10,600  

Accounts Receivable   $ 10,600

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Balance at the End    

Allowance for Bad Debts   $ 10,100

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