Answer:
Explanation:
a. At the end of the period, bad debt expense is estimated to be $15,000.
b. During the period, bad debts are written off in the amount of $9,500.
Assets = Liabilities + Stockholder's Equity
a.
Retained Earning -$15,000
Account Receivable -$15,000
b.
Allowance for Doubtful Account -$9,500
Account Receivable -$9,500
(Allowance for Doubtful Account is a contra account to account receivable decrease in this account will ultimately increase the assets value.