Question

If the Allowance account had a credit balance of $29,500 immediately before the year-end adjustment for bad debts and no accounts were written-off or allowed for during the year, what was the amount of Bad Debt Expense recognized during the year

Answer 1

Answer:

Bad Debt expense recognized during the year = $39000

Explanation:

Note: A table is missing and it is attached as picture

                   Allowance for Doubtful Accounts

                                                                         Debit     Credit  

Balance before year-end adjustment                           $29,000

Current Yr. Bad debt recognized                                  $39,000

Closing Balance as per balance sheet       $68,000                  

Total Balance                                                $68,000    $68,000