Question

BlendedBlended Corporation uses the allowance method to account for uncollectible receivables. At the beginning of the​ year, Allowance for Bad Debts had a credit balance of $ 1 comma 300$1,300. During the year BlendedBlended wrote off uncollectible receivables of $ 1 comma 800$1,800. BlendedBlended recorded Bad Debts Expense of $ 2 comma 800$2,800. What is Blended'sBlended's ​year-end balance in Allowance for Bad​ Debts?

Answer 1

Answer:

The answer is: $2,300

Explanation:

To determine the ending balance of the account Allowance for Bad Debts of Blended Corporation, we can use the following formula:

ending balance = beginning balance - amount wrote off + recorded bad debts

ending balance = $1,300 - $1,800 + $2,800 =$2,300