Answer:
Step-by-step explanation:
Given,
IN 2015
Accounts Receivable = $1,210,920
Allowance for Doubtful Accounts = (64,600)
Accounts Receivable, Net = $1,146,320
IN 2016
Accounts Receivable = $1,560,200
Allowance for Doubtful Accounts = (79,000)
Accounts Receivable, Net = $1,481,200
If the company recorded no write-offs or recoveries during 2016 then no write off in the accounts receivable for 2015 must have been carried forward. $80, 800 due to Allowance for Doubtful Accounts for that year 2015 is brought forward into Allowance for Doubtful Accounts in 2016
Therefore Allowance for Doubitfull accounts Beginning balance in 2016 Credit $80,800
So......
Bad Debt Expense reported in 2016 = Allowance for Doubtful Accounts 2016 - Allowance for Doubtful Accounts beginning balance (i .e D/A carried forward)
= 79,000 - 64,600
= $14,400