Allowance for doubtful accounts on 1/1/10 was $50,000. The balance in the allowance account on 12/31/10 after making the annual adjusting entry was $65,000, and during 2010 bad debts written off amounted to $40,000.
You are to provide the missing adjusting entry. Please indicate DR (debit) or CR (credit) to the left of the account title, and place a comma between the account title and the amount of the adjustment.© BrainMass Inc. brainmass.com June 4, 2020, 12:20 am ad1c9bdddf
The solution provides adjusting journal entry for the allowance account.