Question

Blended 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. During the year Blended write off uncollectible receivables of $ 1 comma 800. Blended recorded Bad Debts Expense of $ 2 comma 800. What is Blended ​year-end balance in Allowance for Bad​ Debts?

Answer 1

Answer:

$2,300

Explanation:

Given that,

Allowance for Bad Debts, at beginning =   $1,300

Current period bad debts expenses = $2,800

Written off during the period = $1,800

Therefore,

Allowance for bad debts, at year end:

= Allowance for bad debts, at beginning + Current period bad debts expenses - Written off during the period

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

= $2,300