Question

Nenn Co.'s allowance for uncollectible accounts was $190,000 at the end of 2024 and $200,000 at the end of 2023. For the year ended December 31, 2024, Nenn reported bad debt expense of $26,000 in its income statement. What amount did Nenn debit to the appropriate account in 2024 to write off actual bad debts?

Answer 1

The amount Nenn debited to write off of actual bad debt is $36,000

Step-by-step explanation:

Allowance for Uncollectible beginning = $200,000

Allowance for Uncollectible at the end = $190,000

Bad debt expense reported = $26,000

Amount Nenn debited to write off of actual bad debt = $200,000 + $26,000 - $190,000 = $36,000