Answer:
$159,000
Explanation:
The double entry to record the writes off balances which are the bad debts of Customers who will not pay the debt, will include debit to allowance which is decrease in the allowance and credit to accounts receivable which is also a decrease to accounts receivable:
Dr Allowance for doubtful account $1,100
Cr Accounts Receivable $1,100
Similarly the increase in Allowance for Doubtful Accounts of $11,000 will be treated totally opposite of the decrease in Allowance for Doubtful Accounts above:
Dr Accounts Receivable $11,000
Cr Allowance for doubtful account $11,000
Now, the increase in allowance is deducted from opening accounts receivables and vice versa. The treatment is given below:
Opening balance of Accounts receivables $170,000
Accounts Receivable ($1,100)
Allowance for Doubtful Debt ($11,000 - $1,100) <u> $9,900 </u>
Accounts Receivable (Net) $159,000
