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Allowance for Doubtful Accounts has a credit balance of $1,655 at the end of the year...

Allowance for Doubtful Accounts has a credit balance of $1,655 at the end of the year (before adjustment), and an analysis of customers' accounts indicates uncollectible receivables of $19,807. Which of the following entries records the proper adjustment for bad debt expense?

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Answer #1

Allowance for doubtful accounts, unadjsuted = $1,655

Uncollectible receivables = $19,807

Bad debt expense = Uncollectible receivables- Allowance for doubtful accounts, unadjsuted

= 19,807-1,655

= $18,152

The following journal entry will be made to record bad debt expense:

General Journal Debit Credit
Bad debt expense $18,152
Allowance for doubtful accounts $18,152
( To record bad debt expense)

Kindly comment if you need further assistance. Thanks

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