Answer:
$13,000
Step-by-step explanation:
When a company makes sales on account, debit accounts receivable and credit sales. Based on assessment, some or all of the receivables may be uncollectible.
To account for this, debit bad debit expense and credit allowance for doubtful debt. Should the debt become uncollectible (i.e go bad), debit allowance for doubtful debt and credit accounts receivable.
Where a debit that had previously been determined to have gone bad gets settled, debit cash and credit bad debt expense.
If accounts receivable deemed worthless and written off during 2014 was 18,000, this would have been done by
Debit Allowance for doubtful debt $16,000
Credit Accounts receivable $16,000
then
Debit Bad debts expense $2,000
Credit Accounts receivable $2,000
Furthermore, if it has been determined that an allowance for doubtful accounts of $11,000 is needed at December 31, 2014, entries required are
Debit Bad debt expense $11,000
Credit Allowance for doubtful debt $11,000
As such, total entries to bad debts account
= $11,000 + $2,000
= $13,000