Question

Swifty Corporation's allowance for uncollectible accounts was $187500 at the end of 2017 and $180500 at the end of 2016. For the year ended December 31, 2017, Swifty reported bad debt expense of $32800 in its income statement. What amount did Swifty debit to the appropriate account in 2017 to write off actual bad debts?

Answer 1

Answer:

The amount Swifty debited to the appropriate account in 2017 to write off actual bad debts: $25,800

Explanation:

Allowance for uncollectible accounts at the end of 2017 = Allowance for uncollectible accounts at the end of 2016 + Bad debt expense of 2017 - The amount of write off actual bad debts.

The amount of write off actual bad debts = Allowance for uncollectible accounts at the end of 2016 + Bad debt expense of 2017 - Allowance for uncollectible accounts at the end of 2017 = $180,500 + $32,800 - $187,500 = $25,800