Answer:
Balance in the Allowance Account : $1600
Please see details below:
Explanation:
When the company determined the bad debt balance, the company made the next entry to the accounting system.
Debit - Bad Debts Expense $1000
Credit - Allowance for Doubtful Accounts $1000
When the company write-off some debts it makes the next entry.
Debit - Allowance for Doubtful Debts $2.100
Credit - Accounts Receivable $2.100
When the company recorded bad debt expenses:
Debit - Bad Debts Expense $2700
Credit - Allowance for Doubtful Accounts $2700