Question

The following is a portion of the current assets section of the balance sheets of Avanti's, Inc., at December 31, 2020 and 2019: 12/31/20 12/31/19 Accounts receivable, less allowance for bad debts of $9,191 and $17,208, respectively $177,589 $235,235 Required: a. If $11,944 of accounts receivable were written off during 2020, what was the amount of bad debts expense recognized for the year? (Hint: Use a T-account model of the Allowance account, plug in the three amounts that you know, and solve for the unknown.)

Answer 1

$3,927

Step-by-step explanation:

Bad debt expenses:

= Ending balance of allowance account + Write offs - Beginning balance of allowance account

= $11,944 + $9,191 - $17,208

= $3,927

Allowance for bad debt account

Particulars Amount Particulars Amount

Write offs $11,944 By balance b/d (beginning) $17,208

To balance c/d (ending) $9,191 Bad debt expense $3,927

Total $21,135 $21,135

Therefore, the amount of bad debts expense recognized for the year is $3,927.