Question

BlendedBlended Corporation uses the allowance method to account for uncollectible receivables. At the beginning of the​ year, Allowance for Bad Debts had a credit balance of $ 800$800. During the year BlendedBlended wrote off uncollectible receivables of $ 1 comma 700$1,700. BlendedBlended recorded Bad Debts Expense of $ 2 comma 900$2,900. What is Blended'sBlended's ​year-end balance in Allowance for Bad​ Debts?

Answer 1

Blended'sBlended's ​year-end balance in Allowance for Bad​ Debts is $2,000

Step-by-step explanation:

The computation of the ​year-end balance in Allowance for Bad​ Debts is shown below:

= Credit balance of Allowance for Bad Debts + bad debt expense - wrote off uncollectible receivables

= $800 + $2,900 - $1,700

= $2,000

Simply we added the bad debt expense and deducted the written off uncollectible receivables to the beginning balance of Allowance for Bad Debts