Question

Allowance for Doubtful Accounts has a debit balance of $845 at the end of the year (before adjustment), and an analysis of accounts in the customers ledger indicates uncollectible receivables of $15,368. Which entries records the proper adjusting entry for bad debt expense?

Answer 1

Explanation:

Given that

Debit balance = $845

Uncollectible receivables = $15,368

The Journal entry is given below:-

1.    Bad debt expenses                                        $16,213

            To, Allowance for Doubtful Accounts                    $16,213

(Being bad dept expenses is recorded)

Note

Computation is shown below:-

Debit balance + Uncollectible receivables

= $845 + $15,368

= $16,213