Question

On January 1, 2019, the balance in Kubera Co.'s Allowance for Bad Debts account was $1,150. During the year, a total of $3,655 of delinquent accounts receivable was written off as bad debts. The unadjusted balance in the Allowance for Bad Debts account at December 31, 2019, was $1,450. Required: a. What was the total amount of bad debts expense recognized during the year

Answer 1

$3,955

Step-by-step explanation:

Bad debts are debts owned to a business whose likelihood of collection is not guaranteed.

Debit

Particulars Amount

Debtors. $3,655

Balance c/f. $1,450

Total $5,105

Credit

Particulars. amounts

Balance b/f $1,150

Bad debts. $3,955

Total. $5,105

Therefore, the amount of bad debts recognized during the year is $3,955