Question

1. on January 1, 2016, the balance in buying companies allowance for bad debts account was...

1. on January 1, 2016, the balance in buying companies allowance for bad debts account was $13,329. During the first 11 months of the year bad debts expense of $21,037 was recognized. The balance in the allowance for bad that's account at November 30, 2016 was $9807.

What was the total of accounts written off during the first 11 months?
Bad debts write off=

2. as the result of a comprehensive analysis, it is determined that the December 31, 2016, balance of the allowance for bad debts account should be $9349. Show the adjustment required in the journal entry format;



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Answer #1

1)

Bad Debts Write off =Opening balance of bad debts account + bad debts expense  recognized - Closing balance of bad debts account.

Bad Debts Write off = $13,329 + $21,037 - $9807

Bad Debts Write off = $ 24,559

2)

Bad debt difference = $ 9,807 - $ 9,347 = $460

ACCOUNTS Debit Credit
Allowance for Bad Debts. $ 460.00
Bad Debts Expense                 $ 460.00
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