Question

Nenn Co.'s allowance for uncollectible accounts was $190,000 at the end of 2017 and $180,000 at the end of 2016. For the year ended December 31, 2017, Nenn reported bad debt expense of $31,000 in its income statement. What amount did Nenn debit to the appropriate account in 2017 to write off actual bad debts?
$21,000

$10,000

$41,000

$31,000

Answer 1

Answer:

$ 21,000

Explanation:

To determine the answer we need to preoare a movemnet of the account for uncollectible account.

Opening balance - Allowance for uncollectible accounts           $ 180,000

Add: Bad debt expense for the year                                             $   21,000  

Available balance of Allowance for uncollectible accounts        $  201,000

Less: Closing balance - Allowance for uncollectible accounts    $  190,000

Actual bad debts written off                                                          $ 21,000

The bad debts expense for the year is credited to the Allowance for uncollectible accounts and any actual bad debts are debited to this account.