Share
Explore BrainMass

Accounting for Bad Debts issue

Here's the question: as of January 2009, the balance in Company A's Allowance for Bad Debts account was 9,720. During the year, a total of 23,900 of delinquent receivables was written off as bad debt. The balance in the Allowance for Bad Debt account at December 31, 2009 was 10,480.

a. What was the total amount of bad debts expense recognized during the year if I use T accounts for the bad debt accounts and,

b. What is the actual journal entry used to show the result of comprehensive analysis, determining that the December 31, 2009 balance of Allowance for Bad Debts should be $23,200?

Thank you!

Solution Preview

Here's the question: as of January 2009, the balance in Company A's Allowance for Bad Debts account was 9,720. During the year, a total of 23,900 of delinquent receivables was written off as bad debt. The balance in the Allowance for Bad Debt account at December 31, 2009 was ...

Solution Summary

This solution is comprised of a detailed explanation to answer the total amount of bad debts expenses recognized during the year if I use T-accounts for the bad debt accounts and what is the actual journal entry used to show the result of comprehensive analysis, determining that the December 31, 2009 balance of Allowance for Bad Debts should be $23,200.

$2.19