Question

Indicate the accounts affected and enter decreases to account categories with a minus sign. 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.

Answer 1

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.