Question

enn Co.'s allowance for uncollectible accounts was $190,000 at the end of 2020 and $180,000 at the end of 2019. For the year ended December 31, 2020, Nenn reported bad debt expense of $31,000 in its income statement. What amount did Nenn debit to the appropriate account in 2020 to write off actual bad debts?

Answer 1

$21,000

Step-by-step explanation:

The computation is shown below:

Given that

Beginning balance of Allowance for Uncollectible = $180,000

Ending balance of Allowance for Uncollectible = $190,000

Bad debt exp reported = $31,000

Now considering the above information,

The Write off of actual bad debt is

= $180,000 + $31,000 - $190,000

= $21,000

We simply applied the above formula