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How to find bad debt expense? ACCOUNTING HELP?

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  • How to find bad debt expense? ACCOUNTING HELP?


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Answer #1 | 05/12 2013 11:27
7300 is to be written off as bad debt but 3100 is to be written back so bad debt for the period is 4200 Doubtful debts is the 25000 the key word is 'estimated'
Answer #2 | 05/12 2013 11:42
(a) Prepare the entry to record bad debt expense for the period. Dr Bad Debt Expense 20,200 Cr Allowance for Doubtful Accounts 20,200 Beginning Balance 9,000 - Write off 7,300 + Recovery 3,100 + Bad Debts 20,200 = Ending balance 25,000 (b) Determine the ending balances in Accounts Receivable and Allowance for Doubtful Accounts. Accounts Receivable Beginning balance $200,000 | Collections 763,000 Sales 800,000 | Write-off 7,300 Recovery 3,100 | Collection 3,100 End Bal. 229,700 Allowance for Doubtful Accounts ....... ........ .....|Beg.Bal. 9,000 Write-off 7,300 | Recovery 3,100 ........ ..... ........| Bad Debts 20,200 (c) The net realizable value of the receivables at the end of the period Net realizable value of receivables is $229,700 – $25,000 =$204,700

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